Overseas donee status

2012 legislation granting overseas donee status for tax purposes to listed charities.

Schedule 32 of the Income Tax Act 2007

The following organisations have been granted overseas donee status:

  • Aotearoa Development Cooperative
  • Deepavali Charitable Trust
  • Orphans of Nepal
  • School Aid: Global Partnerships Through Schools
  • Queen Elizabeth II Diamond Jubilee Trust.

Background

Charities that apply some or all of their funds outside New Zealand must be approved for charitable donee status by Parliament. These organisations are listed in schedule 32 of the Income Tax Act 2007.

Donations to listed organisations entitle individual taxpayers to a tax credit of 331/3% of the amount donated up to the level of their taxable income, and companies and Māori authorities to a deduction for donations up to the level of their net income.

During Parliament's consideration of the bill, Supplementary Order Paper No. 98 added, with effect from 31 May 2012, the Queen Elizabeth II Diamond Jubilee Trust in the list of donee organisations in schedule 32 of the Income Tax Act 2007. The change is subject to a sunset clause with the effect that the Trust ceases to be listed as a donee organisation after 31 March 2014.

Application date(s)

The amendments apply from 1 April 2013. In the case of the Queen Elizabeth II Diamond Jubilee Trust, the application date is 31 May 2012.