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Income Tax Act 2007

Timing and quantifying rules - Spreading of specific expenditure - Definitions

EJ 21: Contributions to employees’ superannuation schemes

You could also call this:

“Tax deductions for employer contributions to employees' superannuation schemes”

If you’re an employer and you contribute to your employees’ superannuation schemes, you can get a tax deduction. This is explained in section DC 7.

You have a choice about when to claim this deduction. You can choose to claim it in the income year when the contribution was supposed to be made according to the superannuation scheme. Or, you can claim it in the year when the contribution amount was worked out based on what your employees earned that year. But remember, you can only do this if you make the contribution within 63 days after the end of the income year.

If you want to choose when to claim the deduction, you need to tell the government before you file your tax return for that year. If you need more time to decide, you can ask the Commissioner for an extension.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515150.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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Part E Timing and quantifying rules
Spreading of specific expenditure: Definitions

EJ 21Contributions to employees’ superannuation schemes

  1. This section applies when an employer is allowed a deduction for a superannuation contribution to an employee’s superannuation scheme under section DC 7 (Contributions to employees’ superannuation schemes).

  2. The employer may choose to allocate the deduction to the income year for which the contribution was required by the superannuation scheme to be made, or for which the amount of the contribution was calculated taking into account the earnings paid to employees who were members of the scheme during the income year, if the employer makes the contribution within 63 days after the end of the income year.

  3. The employer must make the election before filing a return of income for the income year or within a longer time if the Commissioner agrees.

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