A club or society’s taxable income is based on its net profit or loss from revenue sources only, including:
interest, dividends and rents
taxable Maori authority distributions (see IR9 Types of income for organisations – Q11 and Q12)
sponsorship and admission fees
advertising revenue from club journals, magazines or other printed material.
Any membership subscriptions or levies are not income for tax purposes.
Certain transactions the club or society does with its members may be liable for income tax. This includes the purchase of trading stock and the supply of services. Deduct any costs incurred in earning income from taxable sources when you calculate the club or society’s taxable income.