Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Tax credits and other credits - General rules for tax credits

LA 7: Remaining refundable credits: tax credits for social policy and other initiatives

You could also call this:

“Rules for handling leftover tax credits for social support and other initiatives”

When you have tax credits left over for a tax year, there are special rules for certain types of credits. These include credits for families, early childhood education, research and development tax losses, and charitable donations.

If you have any of these types of credits remaining, the Commissioner of Inland Revenue will handle them in a specific way. They will either transfer the credit to someone else or give you a refund.

The Commissioner follows rules set out in different parts of the tax laws to decide how to deal with your remaining credit. They might transfer it using rules from Part 10B of the Tax Administration Act 1994. Or they might refund it using rules from sections RB 4, RM 2 to RM 8, and RM 10 of the Income Tax Act.

This process helps make sure you get the full benefit of your tax credits, even if you don’t owe enough tax to use them all up in one year.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517905.

Topics:
Money and consumer rights > Taxes
Previous

LA 6: Remaining refundable credits: PAYE, RWT, and certain other items, or

“How your remaining tax credits are used or refunded”

Next

LA 8: Remaining refundable credits: non-resident withholding tax, or

“How to use or get a refund for leftover non-resident withholding tax credits”

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

LA 7Remaining refundable credits: tax credits for social policy and other initiatives

  1. This section applies to a person's tax credit remaining for a tax year under section LA 5(5), if it is a tax credit under—

  2. section LB 4 (Tax credits for families):
    1. section LB 4BA (Tax credits for early childhood education):
      1. section LB 4B (Tax credit for R&D tax losses):
        1. section LD 1(5) (Tax credits for charitable and other public benefit gifts).

          1. The Commissioner must treat the person’s tax credit as transferable under Part 10B of the Tax Administration Act 1994 or refundable under sections RB 4, RM 2 to RM 8, and RM 10 (which relate to refunds and their use), as applicable.

          Compare
          Notes
          • Section LA 7 heading: substituted (with effect on 1 April 2008), on , by section 309(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section LA 7 heading: amended (with effect on 1 April 2015 and applying for income years beginning on or after that date), on , by section 198(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
          • Section LA 7(1) heading: substituted (with effect on 1 April 2008), on , by section 309(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section LA 7(1): substituted (with effect on 1 April 2008), on , by section 309(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
          • Section LA 7(1)(aba): inserted, on , by section 10 of the Taxation (Budget Measures) Act 2024 (2024 No 19).
          • Section LA 7(1)(ab): inserted (with effect on 1 April 2015 and applying for income years beginning on or after that date), on , by section 198(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
          • Section LA 7 list of defined terms family scheme income: repealed (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).