Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Memorandum accounts - Memorandum accounts of consolidated groups - Imputation credits of consolidated imputation groups

OP 25: Consolidated ICA non-resident withholding tax withheld

You could also call this:

“Tax credits for groups with Australian companies paying non-resident withholding tax”

When your group includes an Australian company that deals with taxes, you might get some extra tax credits. This happens when the Australian company earns money from outside New Zealand, and some tax is taken out of that money before it reaches the company. The amount of tax taken out becomes a credit for your group.

You can find this credit listed in a special table. It’s in table O19, which shows tax credits for groups like yours. Look for row 20, which talks about NRWT paid.

The date of this credit is important. It’s the same day that the tax was taken out of the money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519461.

Topics:
Money and consumer rights > Taxes
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OP 24: Consolidated ICA reversal of tax advantage arrangement, or

“Fixing unfair tax credits for company groups sharing tax”

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OP 26: Consolidated ICA payment of amount of tax for schedular payment, or

“Tax credit for consolidated groups when an Australian company gets contractor payments”

Part O Memorandum accounts
Memorandum accounts of consolidated groups: Imputation credits of consolidated imputation groups

OP 25Consolidated ICA non-resident withholding tax withheld

  1. A consolidated imputation group that includes an Australian ICA company has an imputation credit for an amount of non-resident passive income derived by the company from which non-resident withholding tax (NRWT) is withheld.

  2. The imputation credit in subsection (1) is referred to in table O19: imputation credits of consolidated imputation groups, row 20 (NRWT paid).

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

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