Which income streams are tax exempt?

November 2016

The Tax Act deals with a wide category of exempt income on which income tax is not payable.

However, such exemptions should still be declared in income tax returns. Although income tax is not payable on exempt income itself, its inclusion in tax returns does alter the rate of tax payable on other income.

Please note that any tax losses carried forward are first applied against exempt income.

Of course, this has created a potential minefield in the tax act and is an area that, in time, will lose a lot of exemptions as the budget comes under pressure.

Items of exempt income

Exempt income includes:

Remember, there is no substitute for proper professional advice. Call into your local TaxAssist Accountants’ office to see an accountant for more specific details.