TAX TIDBITS
Issue Twenty-Three, May 2008
In this months issue:
Great News! Tax legislation passed regarding donations
Tax legislation passed, increasing incentive for donations
There’s now great news for individuals and small companies / SME’s who donate to charities. Tax legislation which was proposed in the 2007 budget has now been passed into law removing the refund limit on charitable donations.
What’s changed?
Individuals:
Previously, no matter how much an individual donated, the maximum refund was $630. The change means next year when you or we complete your rebate claim form (IR526) you can get a tax rebate of one third of every dollar you donate, up to the amount of your annual net income. This will mean you will need to keep all of your donations certificates to prove your claim.
Companies & Maori Authorities:
Previously only large / listed companies could claim donations as a taxable expense up to 5% of their annual net income. The change means that all companies are now able to claim donations as a tax deductible expense up to the amount of the company’s annual net income.
Note: The current requirement for charities to become registered with the Charities Commission does not affect the donation claims. The organization receiving the donation does not need to have charitable status to be able to claim the rebate. These rebates apply to any organisation with IRD approved donee status.
These changes take effect from 1 April 2008, for the 2008 – 09 income years.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
Breakfast Seminar
The next HWI Seminar is on Business Development - Strategies to help add value to your business.
Wednesday 18th June 2008 at 9am (2 hours). Email maldridge@hwi.co.nz for details or book online at www.hwi.co.nz under the heading SEMINARS.
Disclaimer Information contained within this document is of a general nature and does not constitute advice. Readers are cautioned not to act or reply on it without first seeking professional advice.
