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Inland Revenue

Tax Policy

Applications for overseas donee status

(Clause 98)

Summary of proposed amendments

The bill adds four new charitable organisations to Schedule 32 of the Income Tax Act 2007.

This will allow donors to obtain tax credits on their donations to the following organisations whose activities are largely focussed overseas.

  • Aotearoa Development Cooperative
  • Deepavali Charitable Trust
  • Orphans of Nepal
  • School Aid: Global Partnerships Through Schools

Application date

The amendments will apply from 1 April 2013.


Donations to listed organisations entitle individual taxpayers to a tax credit of 33⅓% of the amount donated, up to their taxable income. Companies and Māori authorities may claim a deduction for donations up to the level of their net income.

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.

The four charitable organisations being added to Schedule 32 are engaged in the following activities:

  • Aotearoa Development Cooperative (ADC) works with poor communities in Burma to establish community-owned microfinance institutions that provide small loans for business development.
  • The Deepavali Charitable Trust provides funds to schools and hospitals in India and developing parts of Asia and, when necessary, provides support to those in need in India and developing parts of Asia in cases of natural disaster (such as the 2004 Boxing Day Tsunami) and famine.
  • Orphans of Nepal provides basic necessities for orphaned children in need in the Kathmandu Valley, including food, accommodation, clothing, health care and education.
  • School Aid aims to assist schools and children in developing countries. The organisation has set up an investment fund, the profits from which go to schools in poor countries.