Incorporated Societies membership subscriptions and taxation
Membership subscription income is commonly treated as non‑taxable under the mutuality principle. However, Inland Revenue has released a draft interpretation statement (ED0265) which suggests that, in some cases, membership subscriptions may be taxable.
This is not a law change, but a potential change in Inland Revenue’s interpretation of existing rules. The statement is still in draft form. We recommend keeping an eye on further Inland Revenue guidance and, once finalised, considering whether your current tax treatment of membership subscriptions remains appropriate.
Fringe benefit tax and charities
There have been proposed changes and ongoing Inland Revenue commentary around the application of Fringe Benefit Tax (FBT) to charities, particularly in relation to benefits provided to employees. These developments may result in a narrower application of existing concessions, and we recommend monitoring Inland Revenue guidance and reviewing current FBT positions to ensure they remain appropriate as the position continues to evolve
The material on this website is for the benefit and information of clients. The items are in the nature of general comments only, and are not to be used, relied or acted upon without seeking further professional advice. Hounsell Accounting Limited accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice
