Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Agents

HD 7: Rate and amount of tax

You could also call this:

“How to calculate tax for agents acting on behalf of others”

When someone acts as an agent for another person (the principal), the tax rate used to work out the agent’s income tax is based on how much taxable income the principal has. You calculate the amount of tax the agent needs to pay by looking at how much of the principal’s taxable income comes from the agent’s activities.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517392.

Topics:
Money and consumer rights > Taxes
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HD 6: When relationship effectively that of principal and agent, or

“When someone else has significant control over your business”

Next

HD 8: Circumstances giving rise to agency, or

“When someone can be treated as a tax agent for another person”

Part H Taxation of certain entities
Agents

HD 7Rate and amount of tax

  1. The rate of tax used to calculate an agent’s income tax liability is determined by reference to the taxable income of the principal. The amount of income tax payable is the amount determined by the amount of agency income as a proportion of the taxable income of the principal.

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