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New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - General withholding and payment obligations

RA 18: Payment date for emigrating companies

You could also call this:

“When companies leave New Zealand: Tax payment deadlines on distributions to shareholders”

When a company leaves New Zealand, it’s treated as if it’s giving money to its shareholders. This is called a distribution. If this happens to your company, you need to pay some tax to the government.

You need to pay the tax on any money your shareholders got from this distribution. This includes tax on income earned in New Zealand and income earned overseas.

You have to pay this tax to the government by a certain date. The date depends on how your company is treated when it leaves New Zealand:

If your company is treated under section FL 2, you need to pay the tax within 3 months after your company leaves New Zealand.

If your company is treated under section FL 3, you need to pay the tax within 3 months after certain events happen. These events are described in that section.

It’s important to pay this tax on time to follow the law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519768.

Topics:
Money and consumer rights > Taxes
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“When to pay tax after losing RWT-exempt status”

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“Getting tax refunds when you've paid too much or by mistake”

Part R General collection rules
General withholding and payment obligations

RA 18Payment date for emigrating companies

  1. This section applies to an emigrating company that is treated under section FL 2 or FL 3 (which relate to the treatment of emigrating companies and their shareholders) as paying a distribution to a shareholder.

  2. On or before the relevant date set out in subsection (3), the company must pay to the Commissioner all amounts of tax for resident passive income or non-resident passive income withheld in relation to the distribution.

  3. The relevant date is,—

  4. for a company that is treated under section FL 2 as paying a distribution to a shareholder, the date that is 3 months after the time of emigration:
    1. for a company that is treated under section FL 3 as paying a distribution to a shareholder, the date that is 3 months after the earliest of the events described in subsection (1)(a) to (c) of that section occurs.

      Compare
      Notes
      • Section RA 18(1): amended (with effect on 30 August 2022), on , by section 101(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section RA 18(2): amended (with effect on 30 August 2022), on , by section 101(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section RA 18(3) heading: inserted (with effect on 30 August 2022), on , by section 101(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
      • Section RA 18(3): inserted (with effect on 30 August 2022), on , by section 101(3) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).