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New Zealand law explained for everyone

Income Tax Act 2007

Tax credits paid in cash - Entitlements under family scheme

MC 5: Third requirement: residence or entitlement to emergency benefit

You could also call this:

“You must live in New Zealand or be eligible for an emergency benefit”

To get tax credits paid in cash, you or your child need to meet certain rules about living in New Zealand. You can get these credits if:

You have lived in New Zealand for at least 12 months in a row at some point in your life. You also need to be living in New Zealand on the days when you would get the tax credits. This rule doesn’t apply if you’re allowed to get an emergency benefit.

You can’t be a temporary resident or be married to, or living with, a temporary resident.

If the tax credit is for a child, that child needs to be living in New Zealand during the time you’re getting the credit.

These rules make sure that the people getting tax credits are really living in New Zealand and not just visiting.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518482.

Topics:
Money and consumer rights > Taxes
Immigration and citizenship > Visas
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MC 4: Second requirement: principal care, or

“You must be the main caregiver for dependent children”

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MC 6: When person does not qualify, or

“When you might not qualify for tax credits due to other benefits”

Part M Tax credits paid in cash
Entitlements under family scheme

MC 5Third requirement: residence or entitlement to emergency benefit

  1. The third requirement is that—

  2. the person referred to in section MC 2 or the child referred to in section MC 4 meets the residence requirements of subsections (2) and (3), as applicable:
    1. the person referred to in section MC 2 is entitled to receive an emergency benefit under section 63 or 64 of the Social Security Act 2018.

      1. The person meets the residence requirements of subsection (1)(a) if the person—

      2. has been—
        1. both a New Zealand resident and present in New Zealand for a continuous period of 12 months at any time; and
          1. resident in New Zealand under section YD 1 (Residence of natural persons) on the days for which a tax credit arises under section MD 1 (Abating WFF tax credit), ME 1 (Minimum family tax credit entitlement), or MG 1 (Best Start tax credit entitlement); and
          2. is not a transitional resident and is not the spouse, civil union partner, or de facto partner of a transitional resident.

            1. The child meets the residence requirements of subsection (1)(a) if the child is both a New Zealand resident and present in New Zealand for the entitlement period.

            Compare
            • 2004 No 35 ss KD 3(1), OB 1 qualifying person (a)(iii)
            Notes
            • Section MC 5 heading: replaced, on , by section 18(1) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
            • Section MC 5(1): replaced, on , by section 18(2) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
            • Section MC 5(2): amended, on , by section 18(3) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
            • Section MC 5(2)(a): replaced (with effect on 1 April 2008), on , by section 124 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
            • Section MC 5(2)(a)(ii): amended, on , by section 13 of the Families Package (Income Tax and Benefits) Act 2017 (2017 No 51).
            • Section MC 5(2)(b): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 211(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
            • Section MC 5(3): amended, on , by section 18(4) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
            • Section MC 5(3): amended (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 108(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
            • Section MC 5 list of defined terms resident: repealed (with effect on 1 April 2008), on , by section 108(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).