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Income Tax Act 2007

Income - Excluded income - Exclusions and limitations

CX 22: Benefits to non-executive directors

You could also call this:

“Tax treatment of benefits given to non-executive directors by companies”

If a company gives something of value to a non-executive director, it might be considered a dividend under section CD 20(2). However, this value transfer is not treated as a fringe benefit if it’s given only because the person is a non-executive director. This means that if you’re a non-executive director and you get something valuable from the company just because of your role, it’s not counted as a fringe benefit for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513378.

Topics:
Money and consumer rights > Taxes
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CX 21: Business tools, or

“Work tools under $5,000 can be used personally without being a taxable benefit”

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CX 23: Benefits provided on premises, or

“Tax-free benefits you can use at work”

Part C Income
Excluded income: Exclusions and limitations

CX 22Benefits to non-executive directors

  1. A transfer of company value to a non-executive director that is a dividend under section CD 20(2) (Benefits of shareholder-employees or directors) is not a fringe benefit if it is made solely because of their capacity as a non-executive director.

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Notes
  • Section CX 22: amended, on , by section 102(1) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
  • Section CX 22 list of defined terms transfer of company value: inserted, on , by section 102(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
  • Section CX 22 list of defined terms transfer of value: repealed, on , by section 102(2) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).