Tax Administration Act 1994

Interest - Specific provisions

120PA: Applying tax credit for supplementary dividend to earlier income year

You could also call this:

"Using a tax credit to reduce earlier income tax"

Illustration for Tax Administration Act 1994

You can use a tax credit for a supplementary dividend to reduce your income tax liability for an earlier year. You do this under section LP 3(3) of the Income Tax Act 2007. The amount you set off does not reduce your tax payable for that year. You set off the tax credit against your income tax liability. This is done for an earlier income year. The Income Tax Act 2007 has more information on this. When you set off the tax credit, it does not change your tax payable. This is important to know when working out your tax. You can find more information in the Income Tax Act 2007.

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This page was last updated on 28 November 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM355374.

Topics:

Money and consumer rights > Taxes

120P: Spreading tax liability or apportioning income back over earlier income years, or

"Paying tax over more than one year"

120Q: Due date for underestimation penalty tax, or

"When to pay tax if you underestimated your income"

Part 7Interest
Specific provisions

120PAApplying tax credit for supplementary dividend to earlier income year

If a taxpayer sets off a tax credit for a supplementary dividend against its income tax liability for an earlier income year under section LP 3(3) of the Income Tax Act 2007, the amount set off does not reduce the taxpayer's tax payable for that year for the purpose of this Part.

Notes

Section 120PA: inserted, on 8 September 1999 (applying to 1997–98 and subsequent income years), by section 71(1) of the Taxation (Remedial Matters) Act 1999 (1999 No 98).
Section 120PA heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 120PA: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).