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Income Tax Act 2007

Deductions - Expenditure specific to certain entities

DV 28: Exempt employee share schemes

You could also call this:

“Rules for tax deductions in exempt employee share schemes”

If you are part of an exempt employee share scheme (ESS), this law affects you. You can’t claim a deduction for any money you spend or lose related to the exempt ESS. However, there is one exception: you can claim a deduction for costs that are specifically for setting up or running the exempt ESS.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS33459.

Topics:
Money and consumer rights > Taxes
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“Rules for tax deductions in employee share schemes”

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Part D Deductions
Expenditure specific to certain entities

DV 28Exempt employee share schemes

  1. This section applies when a person is party to an exempt ESS.

  2. The person is denied a deduction for expenditure or loss in relation to the exempt ESS, except to the extent to which the expenditure or loss relates to establishing or managing the exempt ESS.

Notes
  • Section DV 28: inserted, on (applying on and after that date, or 6 April 2017 if shares under the exempt ESS were acquired after that date in other than the ordinary course of the exempt ESS), by section 62(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).