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RC 32: Wholly-owned groups of companies
or “Companies in the same group can share tax payments”
You could also call this:

“How to calculate remaining tax for merged companies”

When a company joins with another company (called an amalgamation), this law explains how to figure out the leftover income tax for the new, combined company.

The leftover income tax for the new company is calculated as if the two companies had been one company in the year before the amalgamation, or even two years before if that applies. This helps to work out how much tax the new company needs to pay.

However, if the companies had to pay some tax in advance (called provisional tax) before they joined together, they still need to pay that separately. The rule about calculating tax as one company doesn’t apply to these earlier payments.

This law is part of the rules about provisional tax, which is the system where companies pay their tax throughout the year instead of all at once.

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Next up: RC 34: Attribution rule for income from personal services

or “How to balance tax payments between you and your company for personal service income”
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Part R General collection rules
Provisional tax: Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 33Amalgamated companies: calculating residual income tax

  1. This section applies for a tax year when an amalgamating company ends its existence on an amalgamation.

  2. The residual income tax of the amalgamated company for the preceding tax year, or for the tax year before the preceding tax year, as applicable is the amount that would have been the residual income tax of the amalgamated company for the preceding tax year, or for the tax year before the preceding tax year, as applicable if the amalgamating company and the amalgamated company had been 1 company.

  3. Subsection (2) does not apply for the purposes of the provisional tax rules in relation to instalments of provisional tax payable before the amalgamation.

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Notes
  • Section RC 33(2): amended, on , by section 176(1) (and see section 176(2) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).