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Income Tax Act 2007

Tax credits and other credits - Tax credits for petroleum miners

LT 2: Petroleum mining operations outside New Zealand

You could also call this:

“Rules for petroleum miners working outside New Zealand”

If you are a petroleum miner doing petroleum mining or decommissioning work outside New Zealand through a branch or a controlled foreign company, the rules in section LT 1 apply to you with some changes.

Your net loss is calculated as if section DT 1A(4) didn’t apply. This means you don’t have to follow the ring-fencing rules when working out your loss.

There’s a limit on how much tax credit you can get for your overseas petroleum mining or decommissioning work. The credit can’t be more than the smaller of two amounts:

  1. The amount worked out using the formula in section LT 1(2).

  2. The total income tax you and any consolidated group you’re part of have paid in earlier years on income from your overseas petroleum mining or decommissioning work. This is worked out year by year and added up.

The rules in section LT 1(5), (6), and (7) also apply to you, with any necessary changes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS44102.

Topics:
Money and consumer rights > Taxes
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LT 1: Tax credits for petroleum miners, or

“Tax credits available for petroleum miners with losses from stopping operations or well abandonment”

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LU 1: Tax credits for mineral miners, or

“Tax credits for mineral miners who have losses or specific expenses”

Part L Tax credits and other credits
Tax credits for petroleum miners

LT 2Petroleum mining operations outside New Zealand

  1. Section LT 1 applies as modified by this section to a petroleum miner undertaking petroleum mining operations or decommissioning outside New Zealand through a branch or a controlled foreign company in relation to those operations outside New Zealand.

  2. The net loss referred to in section LT 1(1)(c) for the petroleum miner is the net loss the petroleum miner would have if section DT 1A(4) (Ring-fenced allocations) did not apply.

  3. The maximum amount of the credit referred to in section LT 1(4) for the petroleum miner in relation to the petroleum mining operations or decommissioning outside New Zealand must not be more than the lesser of—

  4. the result of the formula in section LT 1(2); and
    1. the amount of income tax paid by the petroleum miner and any consolidated group of which the petroleum miner is a member on net income derived for all earlier tax years that relates to the petroleum mining operations or decommissioning outside New Zealand, calculated on a year-by-year basis and aggregated.

      1. Section LT 1(5), (6), and (7) applies, with any necessary modifications, for the purposes of subsection (3).

      Notes
      • Section LT 2: inserted, on , by section 162(1) (and see section 162(2) for application) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).