RE 13Dividends other than non-cash dividends

1. This section applies when a person makes a payment of resident passive income that consists of a dividend other than a non-cash dividend.

2. This section does not apply if,—

3. at the same time as making a payment of a dividend other than a non-cash dividend, the person also makes a payment of a non-cash dividend; and
4. they choose to apply section RE 14B; and
5. the requirements of section RE 14B are met.

6. The amount of tax for the payment that the person must withhold and pay to the Commissioner is calculated using the formula—

   $(tax\; rate\; \times \; (dividend\; paid\; +\; tax\; paid\; or\; credit\; attached))-\; tax\; paid\; or\; credit\; attached.$

   Where:

7. In the formula,—

8. tax rate is the basic rate set out in schedule 1, part D, clause 5 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits):
9. dividend paid is the amount of the dividend paid before the amount of tax is determined:
10. tax paid or credit attached is the total of the following amounts:
    1. if the dividend is paid in relation to shares issued by an imputation credit account (ICA) company, the amount of an imputation credit attached to the dividend:
    2. if the dividend is paid in relation to shares issued by a company not resident in New Zealand, the amount of foreign withholding tax paid or payable on the amount of dividend.