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OE 20: BETA person’s payment of income tax
or “Using branch equivalent tax credits to pay income tax on foreign dividends”
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.

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Next up: OE 22: BETA person’s final balance

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

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