Tax credits for Donations
If you have donated at least $5 to any approved done organisation, then you may be able to claim the tax credit for the donation so made by filing up credit return form (IR526) for the relevant tax year and you must:
- Be an individual (not company, trust or partnership)
- Be a resident in New Zealand at any time during tax year
- Have earned taxable income during the tax year in which you are claiming the donation
- Make a claim within a period of 4 years following the year in which the donation was made (w.e.f 01/04/2014).
Maximum Amounts to claim
The Individual can claim lesser of:
- 1/3 of total donations made, or
- 1/3 of taxable income
Subject to the condition that the total donations claimed cannot exceed the taxable income of that year.
Although if you have a spouse, civil union partner or de facto partner who are eligible to make a claim then they can claim the balance part of your donation up to the relevant amount provided they have a taxable income which is at least equivalent to the amount of donation so claimed.
NOTE: To claim any donation an individual must have a receipt for that donation.
(INLAND REVENUE DEPARTMENT [NZ], n.d.)
Proposed changes to Donation Tax Credit
With effect from 1st April 2019 there will be four ways to claim tax credit:
- Upload donation receipts through the year to MyIR, so that refund is automatically without the need to submit IR 528 or
- complete the relevant donation section when providing other income information through the pre-populated account;
- complete a separate return online through MyIR (that is, if done after other income information is provided); or
- complete a paper-based form
Want to claim tax credits on your donations? Contact us
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