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Income Tax Act 2007

Memorandum accounts - Terminating provisions

OZ 14: Dividends from qualifying companies

You could also call this:

“How to calculate exempt income for dividends from qualifying companies during the transitional period”

If you have a qualifying company that pays a dividend during the transitional period, and section OZ 8 applies to that dividend, there’s a special calculation you need to know about. When you’re figuring out how much of the dividend is exempt income, you’ll use a formula. In this formula, there’s a part called ‘tax rate’. For this situation, you should treat the tax rate as 0.30. This affects how much of the dividend is considered exempt income for the person receiving it. Remember, this only applies in specific circumstances during the transitional period for qualifying companies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1632287.

Topics:
Money and consumer rights > Taxes
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“Adjusting how fully credited dividends are calculated during a specific period”

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OZ 15: Attaching imputation credits and notional distributions: modifying amounts, or

“Adjusting imputation credits and notional distributions during tax rate changes”

Part O Memorandum accounts
Terminating provisions

OZ 14Dividends from qualifying companies

  1. This section applies when—

  2. a qualifying company pays a dividend in the transitional period; and
    1. section OZ 8 applies to the dividend.

      1. In the calculation under section HA 14 (Dividends paid by qualifying companies) the extent to which the dividend is exempt income of the person, item tax rate in the formula in section HA 15(2) (Fully imputed dividends) is treated as 0.30.

      Notes
      • Section OZ 14: added, on , by section 520 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section OZ 14(2): amended, on , by section 21 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
      • Section OZ 14 compare note: repealed (with effect on 1 April 2008), on , by section 119 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).