Section 27: Income of exempt organisations.

(1) The income of an exempt organisation is exempt from income tax other than –a) subject to subsection (2), property income, or b) business income, including the business of acquiring and letting properties, that is not related to the function constituting the basis for the organisation’s exemption. (2) Rental income derived by an exempt organisation referred to in subparagraphs (i), (ii) or (v) of paragraph (b) of section 9 is exempt from income tax where the property in respect of which rental income is paid is used exclusively for the activities which further the purposes of the organisation. (3) Where an organisation or institution to which subsection (2) applies derives rental income from which tax has been withheld under section 120, the organisation may apply to the Commissioner for a refund of tax withheld on the income that is exempt from taxation.