Membership Associations


Membership Associations and Professional Bodies:

Membership Associations:

Fidelity or Indemnity Fund,

Trade Union (Registrar of Labour Relations at the Department of Employment and Labour, Department of Employment and Labour),

Chamber of Commerce, or Industries (or an Association of such Chambers),

Mutual Loan Association,

Local Publicity Association. 

Professional Bodies:

Company, society, or other association of persons established to promote the common interest of persons, carrying on any particular kind of business, profession, or occupation.


Section 10(1)(d)(iii) read with Section 30B









Section 10(1)(d)(iv)(bb) read with Section 30B

The “Membership Associations” and “Professional Bodies” refer to entities listed under section 30B of the Income Tax Act, which require the Commissioner’s approval for exemption from income tax and fall outside the scope and income tax rules for public benefit organisations (PBOs) and recreational clubs.

The Membership Associations and Professional Bodies are diverse in nature but have in common that they usually do not have a profit motive nor do they provide any monetary gain or material advantage for their individual members. The entities are membership based and exist largely (but not exclusively) for the benefit of their members. However, the approval under this section is limited to those entities that can demonstrate that substantially the whole of their funding is derived from their annual or other long-term members or from an appropriation by the government. 

Helpful Resources:

EI1 – Application for Exemption from Income Tax – External Form

 EI2A –Written Undertaking Associations – External Form

Associations: Funding Requirement (Draft)

Binding General Ruling: Meaning of “Substantially the Whole”

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