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Income Tax Act 2007

Tax credits paid in cash - Tax credits for R&D tax losses

MX 5: Cancellation of R&D tax losses

You could also call this:

“How cancelled R&D tax loss credits affect your yearly tax losses”

If you have R&D tax loss credits, the Commissioner will cancel some of your tax loss for the year. The amount cancelled is worked out by dividing your R&D loss tax credits by the basic tax rate for companies. This means you can’t use that part of your tax loss anymore.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6767145.

Topics:
Money and consumer rights > Taxes
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MX 4: R&D loss tax credits, or

“Tax credits for research and development losses”

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MX 6: Deduction if increase in basic tax rate for company, or

“Deduction available when company tax rate increases for those with R&D loss tax credits”

Part M Tax credits paid in cash
Tax credits for R&D tax losses

MX 5Cancellation of R&D tax losses

  1. The Commissioner must extinguish the person’s tax loss for a tax year to the extent of the amount calculated by dividing the amount of the R&D loss tax credits for the tax year by the basic tax rate for a company.

Notes
  • Section MX 5: inserted (with effect on 1 April 2015 and applying for income years beginning on or after that date), on , by section 213(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).