News
The tax treatment of honoraria and reimbursements paid to volunteers
An issues paper 'The tax treatment of honoraria and reimbursements paid to volunteers' has been released by IRD.
It explores a number of options for clarifying and simplifying the tax treatment of reimbursements and honoraria paid to volunteers. The paper seeks feedback on suggested ways of dealing with current uncertainties in the tax law relating to these payments to minimise, as much as possible, compliance costs for volunteers and non-profit organisations. Submissions close on 14 December.
For more information see the government's media statement and the issues paper, "The tax treatment of honoraria and reimbursements paid to volunteers" at: http://www.taxpolicy.ird.govt.nz
The government has put out a media statement about it also.
http://www.scoop.co.nz/stories/PA0711/S00013.htm
Payroll Giving
In the next 2 weeks we are expecting an Issues paper to be released by IRD, about Payroll Giving - a really good tool in Promoting Generosity. We will keep you fully informed on this - and a background paper to Payroll Giving will be found on the Philanthropy NZ website early next week in advance of the release of the issues Paper.
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Latest statistics on the Non-profit Sector
Value of Non-profit Sector
New Zealanders give in excess of 270m hours of unpaid labour to the value of $6,95b that equates to 4.9% of GDP in contribution to the national economy. The main beneficiaries are health, welfare and rehabilitation. While the wage cost rose by 3.9% the value non-wage labour rose by 8.1% in the past year. (Source: Statistics NZ)
Small Business Domestic Market
Largely due to the voluntary nature of the third sector business transacted in New Zealand between commercial providers and non-profit customers amounts to only 2% in importance. By comparison business with the public accounts for 45% and business to business transactions cover 22% in value with associated greater recognition.