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Income Tax Act 2007

Tax credits and other credits - Tax credits for supplementary dividends

LP 1: What this subpart does

You could also call this:

“This subpart outlines tax credits for supplementary dividends paid to non-New Zealand residents”

This subpart explains how tax credits work for supplementary dividends. You get a tax credit when a company pays a supplementary dividend to someone who doesn’t live in New Zealand. The amount of the credit is the same as the supplementary dividend.

To get this credit, two things need to happen. First, the company must pay a dividend to someone living outside New Zealand. Second, the company must attach an imputation credit to that dividend. An imputation credit is a type of tax credit that companies can give to their shareholders.

The size of the tax credit depends on the imputation credit attached to the dividend. It will be equal to the amount of the supplementary dividend the company pays.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518279.

Topics:
Money and consumer rights > Taxes
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LO 5: Evidential requirements, or

“Evidence needed for tax credit claims”

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LP 2: Tax credits for supplementary dividends, or

“Tax credits for companies paying dividends to certain non-residents and foreign investment PIEs”

Part L Tax credits and other credits
Tax credits for supplementary dividends

LP 1What this subpart does

  1. This subpart provides the rules for the treatment of a tax credit for a supplementary dividend. The amount of the credit is determined by reference to an imputation credit attached to a dividend paid by a company to a non-resident. For a credit to arise under this subpart, the company must pay a supplementary dividend, and the amount of the credit is equal to the amount of the supplementary dividend.

  2. Repealed
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Notes
  • Section LP 1(2) heading: repealed, on , pursuant to section 77 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
  • Section LP 1(2): repealed, on , by section 77 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).