Gifting
Gift duty was abolished in New Zealand for dispositions of property made on or after 1 October 2011. Originally introduced in 1885, gift duty protected the estate duty base by discouraging people from transferring of assets prior to death, and generated revenue. When estate duty was repealed in 1992, gift duty was retained to address concerns around income tax avoidance and the targeting of social assistance.
However, a subsequent policy review found that New Zealand’s tax framework had strengthened since 1992. The integrity of arrangements involving gifts was adequately safeguarded by broader tax legislation, including the general anti-avoidance provision in section BG 1 of the Income Tax Act 2007. Given that gift duty no longer generated significant revenue and imposed substantial compliance costs on the private sector, the Government decided to repeal it, effective from 1 October 2011.
This means gifts can be made in New Zealand without any gift duty.
The Commissioner has published various items on income tax and goods and services tax involving gifts. This overview sets out these items:
For advice on how gifts may affect a person's eligibility for the residential care subsidy visit the Work and Income site and search for residential care subsidy.
The Commissioner issues different types of guidance items to cater for different customer needs. The different types of items are explained on About our publications.
Income tax
| Title | Summary | Date issued |
|---|---|---|
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Income tax: Income - when gifts are assessable income IS 23/11 |
Gifts are not usually subject to income tax in the recipient’s hands because, generally, they are made as a mark of affection, esteem or respect for an individual and do not have the character of “income”. However, in some circumstances a gift may be assessable income in the recipient’s hands. This interpretation statement considers those circumstances(eg,in connection with the recipient’s employment, or from the recipient’s business, etc). |
6 Dec 2023 |
|
What is the income tax treatment of gift cards and products provided as trade rebates or promotions? QB 25/07 |
This QWBA explains the income tax treatment of gift cards and products provided by trade suppliers to trade customers (business to business) as trade rebates, promotions, or rewards for trade customers buying goods or services from trade suppliers. | 16 Apr 2025 |
|
Income tax - donee organisations and gifts QB 16/05 |
This QWBA provides guidance on when a charity or donee organisation may issue a donation receipt for amounts of money paid to them by supporters. Individuals can claim donation tax credits if they have a valid donation receipt.The QWBA explains the meaning of a “charitable or other public benefit gift”. See the Charities and not-for-profits Overview page for more technical guidance on gifts to charities and non-profit bodies. |
23 Jun 2016 |
Goods and services tax
| Title | Summary | Date issued |
|---|---|---|
|
IS 20/09 |
This IS provides guidance on the meaning of “unconditional gift” for GST purposes. A payment made to a GST-registered non-profit body that is an “unconditional gift” is not “consideration” for a supply of goods or services and is not subject to GST. |
23 Dec 2020 |