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Income Tax Act 2007

Tax credits and other credits - General rules for tax credits

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

You could also call this:

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

If you have a tax credit left over for the year under section LA 5(5), and it’s a tax credit for non-resident withholding tax under section LB 5, here’s what happens:

The Commissioner of Inland Revenue will do two things with your tax credit. First, they will treat it as if you’ve paid too much tax. This means you can transfer it to someone else under Part 10B of the Tax Administration Act 1994.

If you don’t transfer it, the Commissioner will then refund your tax credit. They’ll do this following the rules in sections RB 4, RM 2 to RM 8, and RM 10. These sections explain how refunds work and how you can use them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517907.

Topics:
Money and consumer rights > Taxes
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“Rules for handling leftover tax credits for social support and other initiatives”

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LA 8B: General rules particular to life insurers, or

“Special tax credit rules for life insurance companies”

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

LA 8Remaining refundable credits: non-resident withholding tax

  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 section LB 5 (Tax credits for non-resident withholding tax).

  2. The Commissioner must—

  3. first, treat the tax credit as tax paid in excess and as transferable under Part 10B of the Tax Administration Act 1994:
    1. second, refund the tax credit under sections RB 4, RM 2 to RM 8, and RM 10 (which relate to refunds and their use), as applicable.

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      Notes
      • Section LA 8 list of defined terms non-resident withholding tax: repealed, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).