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Income Tax Act 2007

Taxation of certain entities - Qualifying companies (QC)

HA 16: Dividends paid by qualifying companies to trustee shareholders

You could also call this:

“Tax rules for trustees and beneficiaries receiving dividends from qualifying companies”

This section talks about what happens when a qualifying company pays dividends to a trustee shareholder. If you’re a trustee and you get a dividend from a qualifying company, it might be exempt from tax for you. This is based on a rule in another part of the law.

If you’re a beneficiary living in New Zealand and you get some of that dividend as beneficiary income, you don’t have to pay tax on it either. The law says it’s exempt income for you too.

Remember, these rules only apply in specific situations, so it’s important to check if they fit your case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517172.

Topics:

Money and consumer rights > Taxes

HA 15: Fully imputed distributions, or

“Rules for fully imputed dividends paid by qualifying companies”

HA 17: Dividends derived by qualifying companies, or

“Qualifying companies must pay tax on dividends from related NZ companies”

Part H Taxation of certain entities
Qualifying companies (QC)

HA 16Dividends paid by qualifying companies to trustee shareholders

This section applies when a dividend referred to in section HA 14(2) is derived by a trustee to the extent to which the dividend is exempt income of the trustee under section CW 15(1) (Dividends paid by qualifying companies).
To the extent to which the dividend is also beneficiary income of a beneficiary resident in New Zealand, the dividend is exempt income of the beneficiary under section CW 15(2).

Compare

2004 No 35 s HG 13(1)(a)(i), (1A)

Notes

Section HA 16: substituted (with effect on 1 April 2008), on 6 October 2009, by section 257(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).