Skip to main content

Delays to response times: It's taking longer than usual to answer calls and myIR messages. You may be able to use self-service options in myIR or on our self-service line, 0800 257 777. You can also find information on our website by typing in what you want to do in the search bar. Thank you for your understanding. Log in to myIR

Cost of Living Payment The Government has announced a Cost of Living Payment, which will be paid from 1 August 2022. You do not need to apply for this payment. If you are eligible, we’ll pay it into your bank account. Find out more

Special income tax rules apply to local authorities.

Taxable income

A local authority must pay income tax on non-dividend income (for example, rent and management fees) received from a:

  • council-controlled organisation (CCO)
  • port company
  • energy company.

Exempt income

For local authorities, this income is exempt:

  • rates received from ratepayers
  • income from core services (like parking fees)
  • dividends received from a CCO, port company or energy company.

Limitations on income tax deductions 


Local authorities cannot claim a deduction for charitable or other public-benefit gifts made to donee organisations.


Local authorities cannot convert unused imputation credits to a tax loss.

Last updated: 08 Mar 2022
Jump back to the top of the page