Income Exempt from Tax

What is Exempt Income?
Many types of income are expressly exempt from income tax under tax law. In addition, there are many classes of taxpayers who are exempt on all or some of the income they receive. We do not propose to go into detailed explanations, so this list is for education purposes only.

Bear in mind that some of these items may have conditions or other terms associated with them, so should not be taken as totally exempt simply from its title. Further investigation has to be made if this area affects you as a taxpayer or affects your business.

The list below is wholly exempt from tax.

List of Tax Exempt Income

The list is:

  • Accident or sickness benefits.
  • Accident or sickness insurance.
  • Accident, sickness or death benefit fund.
  • Acquisition and disposition by company of its shares.
  • Agent Orange Trust.
  • Aircraft operators.
  • Alimony or maintenance.
  • Armed forces pay.
  • Charitable bequests.
  • Charitable business.
  • Charities income.
  • Community task force allowance.
  • Community trust.
  • Compensation for Nazi persecution.
  • Compensation to ex-concentration camp prisoners.
  • Compensation under the Crown Forest Assets Act 1989.
  • Compensation under Workers Compensation Act 1956.
  • Cornwall Park Trust.
  • Criminal injuries payments.
  • Deferred service pay.
  • Disabled persons in sheltered employment.
  • Distribution from a trust set up by a community trust for charity.
  • Dividends derived by companies from foreign companies.
  • Dividends derived by Niuean residents.
  • Dividends derived from New Zealand companies sourced from Niue.
  • Dividends on dairy industry restructuring.
  • Employee funeral expenses.
  • Executive council monetary annuity.
  • Farm vendor finance bond or farm vendor mortgage income.
  • Foreign pensions.
  • Friendly societies.
  • Geothermal Development Ltd.
  • Governor General.
  • Household services.
  • Inflation adjusted savings.
  • Interest payable on dairy industry restructuring.
  • Interest derived from tax exempt sources in foreign countries.
  • Interest from Post Office National Development Bonds or NZ Saving Certificates.
  • Interest on UK post-war credits.
  • Interest payable to non-residents.
  • Jurors and witnesses fees.
  • Large budget screen production grants.
  • Life insurance fund annuities.
  • Local authorities.
  • Maori land lease compensation.
  • New-start grants for drought relief.
  • Niue income derived by a New Zealand company.
  • Non-profit organisations.
  • Non-resident crew members.
  • Non-resident entertainers and visiting sportspeople.
  • Non-resident income.
  • Non-resident students, experts and trainees.
  • Overseas social security payments.
  • Progressive societies.
  • Providers of health, accident or life insurance, or other welfare benefits.
  • Public authorities.
  • Public or local authority sinking funds.
  • Racing industry.
  • Racing stakes.
  • Religious orders, boards and keep of members.
  • Reserve Bank of New Zealand income.
  • Scholarship or bursaries.
  • Scientific or industrial research associations.
  • Shipping operators.
  • Sports bodies.
  • Superannuation to Cook Island residents.
  • Thalidomide Victims Trust.
  • Veteran services, war pensions, welfare benefits.

There are also exemptions under other types of legislation.