Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Tax credits and other credits - Tax credits relating to attributed controlled foreign company income

LK 4: Use of remaining credits

You could also call this:

“How to use leftover tax credits in future years”

If you have a tax credit left over after applying it to your income tax for the year, you can use this section. It tells you what happens to the remaining credit.

When you have used up as much of your tax credit as you can against your income tax, but still have some left, you don’t lose it. Instead, you can keep the leftover amount and use it in the next tax year. This leftover amount is called a “credit carried forward”.

This rule is part of how the government lets you use your tax credits over time, even if you can’t use them all at once.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518147.

Topics:
Money and consumer rights > Taxes
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LK 3: Currency conversion, or

"How to convert foreign tax paid by a controlled foreign company into New Zealand dollars"

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LK 5: Companies’ credits carried forward, or

"How companies can carry forward unused tax credits to future years"

Part L Tax credits and other credits
Tax credits relating to attributed controlled foreign company income

LK 4Use of remaining credits

  1. This section applies for the purposes of section LA 5(2) (Treatment of remaining credits) when a person has a tax credit remaining for a tax year after applying section LA 4(1) (When total tax credit more than income tax liability).

  2. The amount is carried forward to the next tax year as a credit carried forward.

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