Amateur sports promoters
Amateur sports promoters are any society, trust or association set up to promote amateur sport. A common example is a cricket or rugby club.
Amateur sports promoters are exempt from income tax unless their funds are used for the private benefit of owners, shareholders, members, beneficiaries or associates. Amateur sports promoters need to apply in writing for an exemption.
If you don’t qualify for a full exemption you could qualify for a deduction from your club’s net income. This can be up to $1,000 per year to reduce the amount of tax your club pays.
Profit-making sports promoters and clubs
If your sports club does not have a full income tax exemption you’ll need to file a Clubs or societies income tax return - IR9 each year.
If your sports club is unincorporated you’ll be taxed at the same rate as individuals. The ‘Tax on annual income’ calculator will give you your income tax rate and can also work out your tax on taxable income.
If your sports club is registered and incorporated you’ll be taxed at the company tax rate.
Resident withholding tax
If you have money in a bank or other financial institution, resident withholding tax (RWT) may be deducted from your interest.
You need to supply your sports club’s IRD number to the financial institution or they will tax you at a higher tax rate. When you fill out your tax return you can claim the RWT that was deducted from your interest as a credit against tax payable.
If you’re an amateur sports promoter you can apply for an exemption from RWT. To do this, complete an Application for exemption from resident withholding tax (RWT) on interest and dividends - IR451.
If you have a full exemption from income tax you’ll usually be eligible for an RWT exemption.