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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 or superannuation fund”

When you make a member credit contribution to a KiwiSaver scheme or a complying superannuation fund, the Commissioner will pay a tax credit. This tax credit goes to the trustees of your scheme or fund, which we call the fund provider. The amount of the tax credit is worked out using section MK 4.

The Commissioner will pay the full amount of the tax credit directly to your fund provider. They won’t take away any money that you or the fund provider might owe them. The Commissioner will pay this money within 30 working days after the provider files a claim form.

In some cases, the Commissioner might pay the tax credit differently:

  1. They might pay it to you if it’s impossible or too hard to pay it to your fund provider. This could happen if you don’t have a fund provider, if you’ve died, or if you’re very sick.

  2. They might pay it to a different fund provider if you’re moving or have moved to a new one.

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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.

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

“Requirements to get tax credits paid in cash for KiwiSaver or superannuation schemes”

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MK 4: Amount of tax credit, or

“How to calculate your KiwiSaver tax credit”

Part M Tax 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).