Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Employee or contractor expenditure

DC 6: Contributions to employees’ benefit funds

You could also call this:

“Tax deductions for setting up employee benefit funds”

You can deduct money from your taxes if you set aside funds to provide personal benefits for your employees. This applies if the fund is not a superannuation scheme and if your employees are guaranteed to receive the benefits. This rule adds to the general permission for tax deductions and overrides the capital limitation, but other general limitations still apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513770.

Topics:
Money and consumer rights > Taxes
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DC 7: Contributions to employees’ superannuation schemes, or

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Part D Deductions
Employee or contractor expenditure

DC 6Contributions to employees’ benefit funds

  1. An employer is allowed a deduction for an amount that they pay to, or set aside as, a fund to provide individual personal benefits to their employees if—

  2. the fund is not a superannuation scheme; and
    1. the employees’ rights to receive benefits from the fund are fully secured.

      1. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

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