Income Tax Act 2007

Tax credits paid in cash - Tax credits for KiwiSaver schemes and complying superannuation funds

MK 2B: Taxable income

You could also call this:

"What you earn that is counted for tax purposes is called your taxable income."

When you are working out your taxable income for a tax credit year, you use your taxable income from another year. This other year is called the corresponding tax year. The corresponding tax year is usually the tax year that has just ended.

If you have already filed your tax return for that year, or you do not have to file one under section 33 of the Tax Administration Act 1994, then that is your corresponding tax year. You can find more information about this in section MK 2(1)(cc). If you have not filed your tax return and you are required to, then the corresponding tax year is the one before the current year.

You need to know what your taxable income is for the corresponding tax year to work out your tax credits. Your taxable income for the tax credit year is the same as your taxable income for the corresponding tax year. This helps you work out how much you can get in tax credits.

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This page was last updated on 5 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1454133.

Topics:

Money and consumer rights > Taxes

MK 2: Eligibility requirements, or

"Who can get a tax credit paid in cash?"

MK 3: Payment of tax credits, or

"Getting money back from the government for your KiwiSaver or superannuation fund"

Part MTax credits paid in cash
Tax credits for KiwiSaver schemes and complying superannuation funds

MK 2BTaxable income

For the purposes of section MK 2(1)(cc), a person’s taxable income for the tax credit year is their taxable income for the corresponding tax year.
In this section, corresponding tax year means—
the tax year (the current year) that ends during the tax credit year if the person—
1. has filed their return of income for that tax year on or before the end of the tax credit year; or
2. is not required to file a return of income for that tax year under section 33 of the Tax Administration Act 1994; or
in any other case, the tax year preceding the current year.

Notes

Section MK 2B: inserted, on 1 July 2025, by section 11(1) (and see section 11(2) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).