Donation tax rebates

We're looking at making tax more straightforward. See what the proposed changes could mean for you.

Proposed

Donation tax rebates

We're looking at making donation tax rebates easier to complete online. Here's an example of how that could work for someone like Alvin. 

What's proposed

Alvin regularly donates to the charity Save the Pandas, while also making donations to his son’s school and daughter’s kindergarten. Every time he makes a donation, Save the Pandas sends him a receipt. He tries to keep all the receipts from the donations he makes in a safe place, and in April completes a tax credit form (IR526), attaching all the receipts as proof of his donations.

Alvin no longer has to keep all his receipts and store them away until the end of the year. If he has a myIR account, he will be able to take a photo of his receipts when he gets them and upload them straight away.

Inland Revenue will review his receipts at the end of the tax year, calculate everything for Alvin, and pay his refund straight into the bank account they have. Alvin just needs to make sure his contact details and bank account are up-to-date.

Transcript

Now

What happens now

Alvin regularly donates to the charity Save the Pandas, while also making donations to his son’s school and daughter’s kindergarten. Every time he makes a donation, Save the Pandas sends him a receipt. He tries to keep all the receipts from the donations he makes in a safe place, and in April completes a tax credit form (IR526), attaching all the receipts as proof of his donations.

Alvin has to keep all of his receipts from his donations for including with his tax credit form in April. He completes the form, attaches the receipt and posts the form with the receipts to Inland Revenue. The whole process is quite time consuming as getting to the post office is always a bit of a challenge and Alvin is constantly misplacing his receipts!