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MD 6: Second requirement: principal care
or “You must be the main caregiver for a financially dependent child”
You could also call this:

“You must meet specific residency requirements to qualify for the in-work tax credit”

To get an in-work tax credit, you or your child must meet certain residency rules. These rules are the third requirement for the credit.

You meet the residency rules if you have lived in New Zealand for at least 12 months in a row at some point. You also need to be a New Zealand resident on the days when you can get the tax credit. This is decided based on the rules in section YD 1.

You can’t get the credit if you’re a transitional resident. You also can’t get it if you’re married to, in a civil union with, or living with a transitional resident as a couple.

For your child to meet the residency rules, they must live in New Zealand and be present in the country during the time you’re claiming the credit for.

The tax credit is explained in more detail in section MD 1.

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Next up: MD 8: Fourth requirement: person not receiving benefit

or “You must not receive certain benefits to qualify for the in-work tax credit”
Next

Part M Tax credits paid in cash
Abating WFF tax credits

MD 7Third requirement: residence

  1. The third requirement for an entitlement to an in-work tax credit is that the person or child referred to in section MD 4 meet the residence requirements of subsections (2) and (3), as applicable.

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

  3. 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; and
      2. is neither a transitional resident, nor the spouse, civil union partner, or de facto partner of a transitional resident.

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

        Compare
        Notes
        • Section MD 7(1): substituted (with effect on 1 April 2008), on , by section 359(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section MD 7(1): amended, on , by section 472(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section MD 7(2)(a): replaced (with effect on 1 April 2008), on , by section 125(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
        • Section MD 7 list of defined terms in-work payment: repealed, on , by section 472(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section MD 7 list of defined terms in-work tax credit: inserted, on , by section 472(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
        • Section MD 7 list of defined terms resident: repealed (with effect on 1 April 2008), on , by section 125(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).