Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Branch equivalent tax accounts (BETA) - Branch equivalent tax debits

OE 21: BETA person’s refund of income tax

You could also call this:

“Refund of income tax for people with overseas income can result in a tax debit”

You can get a branch equivalent tax debit if you’re a BETA person and you receive a refund of income tax. This happens when you’ve paid income tax on attributed CFC income for a specific income year, and then you get some of that tax back as a refund.

The amount of the branch equivalent tax debit is the same as the amount of the refund you receive. This debit is listed in a special table called ‘person’s branch equivalent tax debits’. You can find it in row 3 of that table, which is labelled ‘refund of income tax’.

The date of the debit is the same day that you get your refund. This means that as soon as you receive the refund, the branch equivalent tax debit applies to your account.

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 It might be out of date or be missing some parts.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=DLM1519248.

Topics:
Money and consumer rights > Taxes
Previous

OE 20: BETA person’s payment of income tax, or

“Using branch equivalent tax credits to pay income tax on foreign dividends”

Next

OE 22: BETA person’s final balance, or

“ What happens to your branch equivalent tax account when you leave New Zealand ”

Part O Memorandum accounts
Branch equivalent tax accounts (BETA): Branch equivalent tax debits

OE 21BETA person’s refund of income tax

  1. A BETA person has a branch equivalent tax debit for an income year for the amount of a refund of income tax attributable to income tax paid for the income year on attributed CFC income derived during the income year.

  2. The branch equivalent tax debit in subsection (1) is referred to in table O10: person’s branch equivalent tax debits, row 3 (refund of income tax).

  3. The debit date is the day the refund is made.

Compare