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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 63: Expenses in paying dividends

You could also call this:

“Companies can claim deductions for costs related to paying dividends”

If you run a company, you can claim a deduction for money you spend on certain things related to paying dividends. These include the costs of authorising, allocating, or processing dividend payments. You can also claim for expenses you incur if you need to resolve any disputes about these matters.

This rule adds to the general permission for deductions and overrides the capital limitation. However, you still need to follow the other general limitations that apply to deductions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6193293.

Topics:
Money and consumer rights > Taxes
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Part D Deductions
Specific rules for expenditure types

DB 63Expenses in paying dividends

  1. A company is allowed a deduction for expenditure incurred in—

  2. authorising, allocating, or processing the payment of a dividend:
    1. resolving a dispute concerning a matter referred to in paragraph (a).

      1. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

      Notes
      • Section DB 63: inserted (with effect on 1 April 2014 and applying for the 2014–15 and later income years), on , by section 50(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).