NFP Tax Obligations – ATO Fact Sheets
Monday, 8th October 2007 at 3:49 pm
The Australian Tax Office (ATO) has updated two fact sheets which help Not for Profit clubs, societies and associations understand their tax obligations.
The fact sheets relate to working out income tax status and how to calculate taxable income.
The fact sheet Does your organisation have to pay income tax? explains the steps for working out whether a Not for Profit club, society or association is exempt from paying income tax. It also explains the income tax concessions that apply to these organisations, whether they are exempt or taxable.
The fact sheet How to calculate your organisation’s taxable income is for Not for Profit organisations that are not exempt from income tax. It helps these organisations calculate their taxable income and includes information on assessable income, mutual receipts and GST. An example of calculating taxable income is included to further assist organisations.
Only certain types of non-profit organisations are exempt from income tax. Many NFP organisations are taxable and may need to lodge income tax returns and pay income tax.
The fact sheets can be downloaded in PDF format at www.ato.gov.au/print.asp?doc=/content/00107108.htm