Law change for charity deregistration

Parliament has passed into law a change to the charity deregistration tax rules.

When you deregister a charity and do not re-register within one year, you may need to pay income tax on specific net assets. This is when the net assets are not transferred to another registered charity or a New Zealand tax-exempt entity. Assets transferred to an overseas charity do not qualify.

In these situations, you may be required to pay deregistration tax.

This applies to charities that deregister on or after 1 April 2024.

Charities deregistration tax on assets