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Income Tax Act 2007

Taxation of certain entities - Taxation of members of certain multinational groups

HP 1: Liability for multinational top-up tax

You could also call this:

“Big companies might have to pay extra tax to help make tax fairer”

If you are part of a big company group, you might have to pay some extra tax. You have to pay this tax to the Commissioner if you are required to under the applied global anti-base erosion rules. The Commissioner is like a tax collector.

If you are part of a company group in New Zealand, you might be responsible for paying this extra tax along with the other companies in your group. This is because you are all part of the same group, so you are all responsible together. You are responsible for the tax that the main company in your group has to pay.

If a company leaves your group, it might not be responsible for the tax anymore. This can happen if the tax collector thinks it is okay and if the company left the group after the tax was calculated. The tax collector has to tell the companies involved that it is okay for the company that left to not be responsible for the tax.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1022071.

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HP 2: Payment date for multinational top-up tax, or

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Part H Taxation of certain entities
Taxation of members of certain multinational groups

HP 1Liability for multinational top-up tax

  1. A constituent entity, other than a securitisation entity, (entity A) that is required to pay an amount of tax for a fiscal year under the applied global anti-base erosion rules must pay the amount to the Commissioner.

  2. Each constituent entity, other than a securitisation entity, that is located in New Zealand under the applied global anti-base erosion rules and that is a member of the same MNE group as entity A is jointly and severally liable with entity A for the amount of tax for the fiscal year payable by entity A under the applied global anti-base erosion rules.

  3. If a constituent entity (entity B) that is a member of the same MNE group as entity A leaves the MNE group, entity B is relieved from liability under subsection (2) for a fiscal year if—

  4. the assessment of entity A’s multinational top-up tax liability for the fiscal year is made after entity B leaves the MNE group; and
    1. the amount assessed is more than an earlier assessment of entity A’s multinational top-up tax liability for the fiscal year; and
      1. the Commissioner considers that the removal of the liability will not significantly prejudice the recovery, or likely recovery, of the amount of multinational top-up tax assessed for the fiscal year; and
        1. the Commissioner notifies entity A and entity B that the requirements of paragraph (c) are met.

          Notes
          • Section HP 1: inserted, on , by section 102(1) (and see section 102(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
          • Section HP 1(1): amended (with effect on 1 January 2025), on , by section 89(1) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
          • Section HP 1(2): amended (with effect on 1 January 2025), on , by section 89(2) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).
          • Section HP 1 list of defined terms securitisation entity: inserted (with effect on 1 January 2025), on , by section 89(3) of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).