Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Tax credits and other credits - General rules for tax credits

LA 2: Satisfaction of income tax liability

You could also call this:

“How to use your tax credits to pay your income tax”

You must use all of your total tax credit for a tax year to pay for your income tax liability for that same tax year. This means you have to apply the full amount of your tax credit to reduce the amount of income tax you owe for the year. You can’t save some of the tax credit for later or use it for anything else.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517895.

Topics:
Money and consumer rights > Taxes
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LA 1: What this Part does, or

“This part explains when you can get tax credits and how to use them”

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LA 3: When total tax credit less than or equal to income tax liability, or

“What happens when your tax credits don't cover all the tax you owe”

Part L Tax credits and other credits
General rules for tax credits

LA 2Satisfaction of income tax liability

  1. A person must use their total tax credit for a tax year to satisfy their income tax liability for the tax year.

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