Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Imputation credit accounts (ICA)

OB 29: ICA payment of schedular income tax

You could also call this:

“Credit for tax paid on specific income by Australian companies”

If you’re an Australian ICA company, you can get an imputation credit when you pay income tax on certain types of income. This applies to income you earn from being a non-resident general insurer or a non-resident shipper. The credit is listed in a special table called ‘imputation credits’ under row 27.

You get this credit on the day you pay the schedular income tax. Schedular income tax is a specific type of tax that applies to certain kinds of income.

Remember, this rule is part of a larger set of rules about how companies handle their taxes and credits. It’s just one piece of the puzzle in making sure companies pay the right amount of tax on their income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518759.

Topics:

Money and consumer rights > Taxes

OB 28: ICA payment of amount of tax for schedular payment, or

“Credit for tax deducted from contractor payments to Australian companies with NZ imputation accounts”

OB 30: ICA payment of dividend, or

“Imputation debit when a company pays a dividend with an attached imputation credit”

Part O Memorandum accounts
Imputation credit accounts (ICA)

OB 29ICA payment of schedular income tax

An Australian ICA company has an imputation credit for a payment of income tax relating to the company’s schedular income tax liability for income derived under section CR 3 (Income of non-resident general insurer) or CV 16 (Non-resident shippers).
The imputation credit in subsection (1) is referred to in table O1: imputation credits, row 27 (payment of schedular income tax).
The credit date is the day the schedular income tax is paid.

Compare

2004 No 35 s ME 4(1B)(c), (2B)(c)

Notes

Section OB 29(1): amended, on 2 November 2012, by section 130 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).