Income tax – Government payments to businesses (grants and subsidies)
This interpretation statement provides guidance on how ss CX 47 and DF 1 apply to payments of grants and subsidies to businesses. Where these provisions apply, a grant or subsidy paid by a local authority, public authority or public purpose Crown-controlled company to a business is not taxable and the expense funded by the grant is non-deductible.
For more information on grants and subsidies see Tax on grants and subsidies (ird.govt.nz).