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.
This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.
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.
