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Public Benefit Organization rental income tax exempted?

Posted 17 May 2015 under Tax Questions


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Anton Boersema says:
11 May 2015 at 15:08

If a Public Benefit Organization that is tax exempt wants to lease a part of their property for the Establishment of a Telecommunication Basestation, will they loose their Tax Exemption and will they have to pay tax on that rental income?

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TaxTimTaxTim says:
12 May 2015 at 8:55

What us the purpose for leasing that property and of the rental income generated how much will this be as a percentage of the overall income of the PBO. What will the rental income be used for?


Anton Boersema says:
12 May 2015 at 9:12

I am not from the PBO, we want to erect a Telecommunication Basestation (Cell Mast) on the property and the PBO asked whether this is going to affect their Tax Exemption if they lease the 10x10m portion land to us.

I wasn't sure and that is why am asking the question, according to what I could find on the internet is that they wont loose their Tax exemption, but might have to pay tax on the rental income.

Unfortunatley I can't give you the percentages as I am not part of the PBO, I am only dealing with them to install the Telecommunication Basestation on their property.


TaxTimTaxTim says:
13 May 2015 at 8:57

Unfortunately we cannot answer this question without more detail, however generally if the intention of renting out the property is to earn money which will be used for the purpose that the PBO was setup then no they will not lose their tax exempt status.


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