Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

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

MK 8: Treatment of tax credits on permanent emigration

You could also call this:

“What happens to KiwiSaver tax credits when you leave New Zealand permanently”

If you permanently leave New Zealand and you’ve received a tax credit in your KiwiSaver scheme or complying superannuation fund, this law applies to you. When you ask your fund provider to withdraw or transfer your money after you’ve left, they need to do something specific.

Your fund provider must pay the government (the Commissioner) the smallest amount out of these three options:

  1. The amount of tax credit you received that the provider still has.
  2. Your total KiwiSaver savings (called ‘member’s accumulation’ in the KiwiSaver Act 2006).
  3. Your total savings in a complying superannuation fund (called ‘employee’s superannuation accumulation’).

The fund provider needs to pay this amount as soon as they can. If they don’t pay quickly enough, they might get in trouble. The government will treat it as if the provider received more tax credit than they should have.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518619.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
Previous

MK 7: Amounts paid in excess, or

“What happens when you get more tax credit than you should”

Next

MK 9: Eligibility requirements, or

“This rule about who can get cash tax credits no longer applies”

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

MK 8Treatment of tax credits on permanent emigration

  1. This section applies in the case of a permanent emigration from New Zealand when a person for whom a tax credit has been paid asks their fund provider after their emigration to withdraw or transfer from their KiwiSaver scheme or complying superannuation fund under schedule 1, clause 14 of the KiwiSaver Act 2006 for a KiwiSaver scheme or under a provision equivalent to that one for a complying superannuation fund.

  2. The fund provider must pay to the Commissioner as soon as practicable the lesser of—

  3. the amount of the tax credit paid for the person and held by the provider:
    1. the amount of member’s accumulation, as defined in the KiwiSaver Act 2006 for the person for a KiwiSaver scheme:
      1. the amount of employee’s superannuation accumulation for the person for a complying superannuation fund.

        1. If the fund provider does not pay the amount under subsection (2) as soon as practicable, they are treated as having an amount of tax credit paid in excess of that properly payable.

        Compare
        • 2004 No 35 ss KJ 3, OB 1 member credit year
        Notes
        • Section MK 8 heading: amended, on , by section 115(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
        • Section MK 8 heading: amended, on , by section 94(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
        • Section MK 8(1): amended, on , by section 115(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
        • Section MK 8(1): amended, on , by section 94(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
        • Section MK 8(1): amended, on , by section 94(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
        • Section MK 8(2)(a): amended, on , by section 131 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
        • Section MK 8 list of defined terms ask: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).