If you have made any donations of $5 or more during the financial year, you may be able to claim these as tax credits.
For claiming donations as tax credits:
- The charity or organisation you donated to must be an approved donee as per the IRD’s ‘Approved Donee Organisations’ list ;
- The donation must not have provided any direct benefit to you or your family; and
- The donation must not have been given to satisfy a full or partial debt.
In addition, only individuals can claim donation tax credits, i.e. you are not permitted to claim on behalf of a company, trust or partnership. However, if your company makes donations to approved charities, then the company is able to claim a deduction for the donation i.e. company taxable profit is reduced by the amount of the donation payment. The amount of the company deduction is limited to the company’s net taxable income (excluding the donations).
For an individual’s donation tax credit, you can claim 33.33 cents for every dollar of eligible donations. The total you can claim in one financial year is the lesser of 33.33% of your total donations or 33.33% of your taxable income. However, it’s worth noting that if your total donations add up to more than your taxable income you can split the claim with your spouse/partner.
Donation receipts can be uploaded online in myIR throughout the tax year.
For more information visit ‘Tax Credits for Donations’ on the IRD’s website.