Part CIncome
Income from equity
CD 29Non-taxable bonus issues
A non-taxable bonus issue is not a dividend.
Compare
- 2004 No 35 s CD 21


When a company gives you extra shares for free, it's called a non-taxable bonus issue. You don't have to pay any tax on these extra shares. The law says that this kind of bonus issue is not counted as a dividend. This means you won't need to include it in your income when you do your taxes.
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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512639.
CD 28: Transfers of certain excepted financial arrangements within wholly-owned groups, or
"Transfers of certain financial deals between related companies are not taxed as dividends"
CD 29B: Issues to shareholders of rights to subscribe for or sell back shares, or
"Rights to buy or sell back company shares aren't counted as dividends"
A non-taxable bonus issue is not a dividend.