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File online and claim for tax refund at http://www.ird.govt.nz |
You are reading it right. Tax credit for donation claims is 33.3333%. This covers from 1 April – 31 March.
As per Inland Revenue, you can claim a tax credit if, in the tax year you are claiming for:
- you received taxable income, eg, salary, wages, and
- you have valid receipts for donations made to approved donee organisations.
This is fully explained in http://www.ird.govt.nz/income-tax-individual/tax-credits/dch-taxcredits/.
In simple terms, if you have been giving your tithes and offerings in your church, you are able to get credit for that. Below is the computation based from the minimum wage and 10% tithes (your choice on what percentage you want to give).
You have to have valid receipts for donations made to approved donee organisations. This includes Churches, Red Cross and all other charitable institutions approved by IRD. Sample form is found here(IR526). One can claim credit for a minimum of $5 donation.
Once you have filed for the first time, Inland Revenue will send via post the form with your details the following year. The same envelop will be used to enclose the receipts together with the IR526 form to be returned to IRD.
Within six weeks, you will be credited through your bank account. That will be enough to spend for a vacation.
Bring out the philanthropist in you and donate. And be faithful with your giving in the church you are in. For people with home churches somewhere in the globe, where do you give your tithes? Do you give to your home church? Or to where you are currently planted? Simply where you are being feed spiritually, that’s where you have to have your tithes. And give offerings to your home church. Your choice, your conviction:)
Luke 6:38 New King James Version (NKJV)
Give, and it will be given to you: good measure, pressed down, shaken together, and running over will be put into your bosom. For with the same measure that you use, it will be measured back to you.