What is a Non-Profit Organisation for Income Tax purpose?

An organisation that satisfies the following conditions:

1. The organisation is:

   1. An institution, body of persons or irrevocable trust established solely for the relief of poverty or distress of the public, or for the advancement of education or religion;

   2. A body of persons established solely for the purpose of controlling or furthering an amateur sport or game;

   3. A trade union registered under the provisions of the Employment Relations Act 2007, or an industrial association registered under the provisions of the Industrial Associations Act 1941; or

   4. A club, society or association organised and operated solely for social welfare, civic management, pleasure or recreation, or any other purpose except pecuniary profit;

2. No part of the income or other funds of the organisation is used or are available for use for the pecuniary profit of a proprietor or member of the organisation;
3. The CEO has certified that the organisation is a non-profit organisation under the Regulations.

Tax Treatment for Charities/Non-Profit Organisations

Income from charities and non-profit organisations is usually exempt from income tax, provided the income is not distributed for personal gain. Some act as government agencies to help provide social services. However, charities and non-profit organisations operating commercially or competing with similar organisations may not be exempt from income tax.

Tax Treatment for Donations to Approved Charitable Institutions

According to Section 24 of the Income Tax Act 2015, a person is allowed a deduction for a cash donation made in a tax year to an approved academic or charitable institution. An approved charitable institution is one approved by the CEO in accordance with the regulations.

What is a Non-Profit Organisation for Value Added Tax (VAT) purpose?

For VAT purposes, a non-profit organisation is any society, association, or organisation (whether incorporated or not) that is not carried on for the profit or gain of any member. Its rules do not allow the distribution of money or other property to any of its members, proprietors, or shareholders. Most charitable organisations, sports clubs, service organisations, professional groups, churches, social clubs, school committees, and Parents & Teachers Associations are considered non-profit bodies for VAT purposes.

When is a Non-Profit Organisation Taxable for VAT Purposes?

A non-profit organisation’s taxability depends on:

• The supply it makes.

• Whether its supply disadvantages a registered person.

Factors determining if a non-profit organisation is competing and disadvantaging a taxable activity include:

• The nature and type of goods and services supplied.
• The value of supplies.

• Whether the consideration received is less than the cost of making those supplies.

• The value of any unconditional gifts received, both in kind and money.

• Whether the supplies are subsidised by unconditional gifts received.

A non-profit organisation is carrying on a taxable activity if it engages in the following on a continuous and regular basis and the gross turnover exceeds FJ$100,000 (FJ$50,000 for years prior to 2012):

• Charging for admission or membership of a club or association through subscription fees.          
• Charging for the admission of persons to any premises.
• Leasing or hiring any real or personal property.

• Operating a commercial venture that involves the supply of goods and services at a price.
• Supplying advertising services by way of a fee or sponsorship.
• Charging a fee for the right to participate in any event organised by the non-profit organisation.

What is a Charitable Organisation?

A charitable organisation can be any institution, body of persons, or irrevocable trust of a public character established solely for the relief of poverty or distress of the public.

Other characteristics include:


• Being a non-profit body.

• Funds and assets are not available for personal use by any member.

• Assets are distributed to other charitable organisations upon closure.

Is a Charitable Organisation Exempt from Tax?

An organisation registered under the Charitable Trusts Act or any other Act by its members is automatically exempt from paying income tax.
List of Approved Charitable Institutions.

Do Charitable Organisations Apply for Exemption?

To qualify for income tax exemption, a written application must be made to the Chief Executive Officer, accompanied by the taxpayer registration form for new charitable organisations not registered with FRCS. The application must include all necessary information relating to the establishment of the business. The Articles of Association, Memorandum of Association, or Trust objectives will help the Chief Executive Officer decide whether the organisation’s income is subject to income tax.

How Do I Register?

Anyone liable to taxation under the Income Tax Act or who becomes liable to register under the VAT Act must complete a registration form within 21 days from the commencement of the taxable activity. Employers must register within 30 days of starting any trade, business, profession, or vocation. For VAT purposes, Section 22 (3) of the VAT Act requires registration within 21 days of becoming liable.


To prevent fraudulent VAT registration, applicants must provide:


• Original documents relating to the formation of the business, such as a certificate of registration, memorandum of association, or articles of association.

• The name and contact details of the authorised officer.

• The exact location of the business premises.
Anyone carrying on a taxable activity with a gross turnover exceeding FJ$100,000 in 12 months must register.

Once the Chief Executive Officer is satisfied with the eligibility, the entity will be registered and notified accordingly.
For more information on non-profit organisation, please email tipu@frcs.org.fj  

Last Updated - July 24, 2025