Income tax return is filed in order to declare your income from all sources to the Australian Tax Office. The various sources of income include income from salary or wages, investment income such as rent, dividend and interest. It also includes income from running a business entity.
The income business receives are mostly measurable and is subject to tax. But you can claim tax deductions for most of the cost incurred in running the business excluding private or domestic expenses. That means you cannot mix the accounts of business with individual expenses. Mostly the deduction depends on the type of business you are running.
The amount of tax can be reduced through important deduction that is directly related with your income which is also known as tax deductible. You might also get further deduction, if eligible for further government rebates.
If you Lodge your income tax return with us, we will ensure that we maximize your tax refund by claiming the maximum refund based on your eligibility. Our certified accountants will work on your tax deduction and tax refund giving you the estimation of your return for free of charge. No personal visit is required. You just need to fill up the basic information HERE and the Accountant will call you in 20 minutes to process your case.
Exempt Non-profit organisations
Not-for-profit organizations that are exempt from income tax do not need to lodge an income tax return unless the Australian Tax Office specifically asks them to do so.
Taxable organisations
If your not-for-profit organisation is taxable (that is, not exempt from income tax), it may have to lodge an income tax return using the company tax return.
For income tax purposes, taxable not-for-profit organizations are treated as either:
- non-profit companies
- other taxable companies.
It is very important to distinguish between a non-profit company and other taxable companies because non-profit companies have special arrangements for lodging tax returns and special rates of income tax.
A non-profit company that is an Australian resident with a taxable income over the taxable threshold of $416 per year must lodge a company tax return.
Other taxable companies are taxed on every dollar of taxable income. They must lodge an income tax return each year, regardless of their taxable income.
Therefore, to work out whether your organisation needs to lodge a company tax return, you need to do all of the following:
- determine if your organisation is a non-profit company or other taxable company
- know your organization’s taxable threshold for lodgment
- calculate your organization’s taxable income.
For further queries or clarifications, please contact our qualified accountants on 1300 698 297 or email us at info@mytaxrefundtoday.com.au