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Income Tax Act 2007

Tax credits paid in cash - Tax credits for KiwiSaver schemes and complying superannuation funds

MK 3: Payment of tax credits

You could also call this:

"How the government pays tax credits to your KiwiSaver scheme"

Illustration for Income Tax Act 2007

When you contribute to a KiwiSaver scheme or a complying superannuation fund, the Commissioner must pay a tax credit. The tax credit is paid to the fund provider, and the amount is calculated under section MK 4. The Commissioner pays the tax credit to the fund provider within 30 working days of the provider filing a claim form under section 68C(3) or (4) of the Tax Administration Act 1994. The Commissioner usually pays the tax credit to the fund provider, but sometimes pays it to you instead. This happens if you do not have a fund provider, or if you have died or are seriously ill, as defined in clause 12(3) of the KiwiSaver Act 2006. The Commissioner can also pay the tax credit to a different fund provider if you are transferring to that provider. The Commissioner must pay the full amount of the tax credit without taking out any amount you or the fund provider may owe. However, there are some exceptions to this rule, which are explained in subsection (5). You can find more information about how the tax credit is calculated and paid by reading the relevant sections of the legislation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518604.

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Topics:
Money and consumer rights > TaxesMoney and consumer rights > Savings and retirement
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MK 2: Eligibility requirements, or

"Who can get tax credits paid in cash?"

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MK 4: Amount of tax credit, or

"How much tax credit you get for putting money into KiwiSaver or a superannuation fund"

Part MTax credits paid in cash
Tax credits for KiwiSaver schemes and complying superannuation funds

MK 3Payment of tax credits

  1. This section applies when a member credit contribution is made to a KiwiSaver scheme or a complying superannuation fund.

  2. The Commissioner must pay a tax credit to the trustees of the scheme or fund (the fund provider) to which the person has contributed. The amount of the tax credit is calculated under section MK 4. Subsection (5) overrides this subsection.

  3. The Commissioner must pay the full amount of the tax credit by direct credit to the fund provider without subtracting any amount that the person or fund provider may be obliged to pay to the Commissioner. Subsection (5) overrides this subsection.

  4. The Commissioner must pay the amount of the tax credit to the fund provider within 30 working days of the provider filing a claim form under section 68C(3) or (4) of the Tax Administration Act 1994.

  5. Despite subsections (2) and (3), the Commissioner may pay the amount of the tax credit as follows:

  6. to the person, if it would be impossible or impractical to pay it to the person's fund provider because either the person has no fund provider, or because the person has died or has suffered a serious illness as defined in schedule 1, clause 12(3) of the KiwiSaver Act 2006; or
    1. to a fund provider (provider B) other than the fund provider referred to in subsections (2) and (3), if the person is transferring or has transferred to provider B.

      Compare
      • 2004 No 35 ss KJ 1, KJ 4, OB 1 member credit contributions
      Notes
      • Section MK 3(1) heading: substituted, on , by section 128(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(1): substituted, on , by section 128(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(2): amended, on , by section 128(2) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(3): amended, on , by section 128(3) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(4) heading: substituted, on , by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(4): substituted, on , by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(5) heading: added, on , by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(5): added, on , by section 128(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3(5)(b): amended, on , by section 111 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
      • Section MK 3 list of defined terms employer contribution: inserted, on , by section 128(5)(a) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3 list of defined terms member credit contribution: inserted, on , by section 128(5)(a) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
      • Section MK 3 list of defined terms superannuation contribution: repealed, on , by section 128(5)(b) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).