Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Tax credits and other credits - Tax credits for payments, deductions, and family payments

LB 5: Tax credits for non-resident withholding tax

You could also call this:

“Getting tax credits for income taxed outside New Zealand”

If you receive income from outside New Zealand, you might have to pay tax on it. This is called non-resident passive income. When you pay this tax, you get a special kind of credit called a tax credit. The amount of tax credit you get is the same as the amount of tax you paid on your non-resident passive income for that tax year. This means that for every dollar of tax you pay on this type of income, you get a dollar of tax credit. You can use this tax credit to reduce the amount of tax you owe overall.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1517923.

Topics:
Money and consumer rights > Taxes
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“Getting a tax credit for losses from research and development activities”

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Part L Tax credits and other credits
Tax credits for payments, deductions, and family payments

LB 5Tax credits for non-resident withholding tax

  1. A person has a tax credit for a tax year equal to the amount of tax withheld and paid in relation to their non-resident passive income for the tax year.

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Notes
  • Section LB 5 list of defined terms non-resident withholding tax: repealed, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).