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OK 7: MACA dividend derived with FDP credit
or “Outdated rule about special dividends with tax credits”
You could also call this:

“Credit for tax withheld from passive income received by Māori authorities”

When you’re a Maori authority, you can get a special credit called a Maori authority credit. You get this credit when someone takes out tax from the passive income you receive. This is known as resident withholding tax.

The amount of the credit is the same as the amount of tax that was taken out. The law treats this as if you, the Maori authority, received the money directly.

This credit is listed in a table called “Maori authority credits”. It’s in row 8 of the table, under the heading “RWT”. RWT stands for resident withholding tax.

You get this credit on the same day that the tax is taken out of your income.

If you want to know more about how this tax is treated, you can look at section RA 9(1)(b) of the Income Tax Act 2007.

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Next up: OK 9: MACA reversal of tax advantage arrangement

or “Correction of wrongly credited tax for Māori authorities”
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Part O Memorandum accounts
Maori authority credit accounts (MACA)

OK 8MACA resident withholding tax withheld

  1. A Maori authority has a Maori authority credit for the amount of tax for resident passive income treated under section RA 9(1)(b) (Treatment of amounts withheld as received) as derived by the Maori authority.

  2. The Maori authority credit in subsection (1) is referred to in table O17: Maori authority credits, row 8 (RWT).

  3. The credit date is the day the amount of tax is withheld.

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