A more generous tax treatment for charitable donations came into effect in April 2008. Now both individuals and companies can benefit from a 33.33% rebate on all donations to the Neurological Foundation and other registered charitable organisations, up to the total value of taxable income.
For example, a donation of $3,000 under the old rules, gave the donor a tax rebate of $630. Under the new rules, a $3,000 donation will give a tax rebate of $1,000.
The new regime brings New Zealand into line with Australia, the UK, Ireland and other OECD countries. By introducing the new regime, the government hopes the increased tax benefits will encourage individuals and companies to give more generously to charities.
Claiming a tax rebate
If you claimed a rebate last year, the IRD will automatically send you a rebate claim form this year (it should arrive in April). Otherwise, you can complete the IR526 form available online or by calling IRD INFO express on 0800 257 773. Remember to have your IRD number handy.
The claims process is straightforward. On receipt of your completed form the IRD calculates your rebate and deposits into your nominated bank account. You now have up to eight years to file a claim for your donations. The IRD will notify you and let you know the amount that has been deposited into your bank account once your claim has been processed.
Claims must be supported by receipts which is why we endeavour to return official receipts to our supporters as quickly as possible.