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Time to claim a tax credit for donations

Tax Alert - June 2018

Have you made any donations? You may be able to claim a tax credit for donations of money made to a donee organisation. To claim this tax credit, a tax credit return form (IR526) needs to be filed for the relevant tax year, and you must:

  • Have made a donation of at least $5 to an approved donee organisation (the payment must be voluntary with no identifiable direct benefit to you or your family in return for the payment);
  • Earn taxable income in the year that you’re claiming for;
  • Be resident in NZ at any time during that tax year; and
  • Be an individual; and
  • Make the claim within a period of four years following the year in which the donation was made.

You can only claim donations up to the amount of your taxable income, but if you have a spouse, civil union partner, or de facto partner who is eligible to make a claim, they are able to claim the balance of your donation up to the relevant amount, provided they earn an amount of taxable income at least equal to the share of the donation they are claiming. Also remember that if you are going to claim this tax credit make sure that you keep a receipt of the donation. If you have any questions about claiming this credit, contact your usual Deloitte advisor.

 

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