RE 13 Dividends other than non-cash dividends
When this section applies

(1)

This section applies when a person makes a payment of resident passive income that consists of a dividend other than a non-cash dividend.

When this section does not apply

(1B)

This section does not apply if,—

(a)

at the same time as making a payment of a dividend other than a non-cash dividend, the person also makes a payment of a non-cash dividend; and

(b)

they choose to apply section RE 14B; and

(c)

the requirements of section RE 14B are met.

Calculation of amount of tax

(2)

The amount of tax for the payment that the person must withhold and pay to the Commissioner is calculated using the formula—

(tax rate × (dividend paid + tax paid or credit attached))
− tax paid or credit attached.

Definition of items in formula

(3)

In the formula,—

(a)

tax rate is the basic rate set out in schedule 1, part D, clause 5 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits):

(b)

dividend paid is the amount of the dividend paid before the amount of tax is determined:

(c)

tax paid or credit attached is the total of the following amounts:

(i)

if the dividend is paid in relation to shares issued by an imputation credit account (ICA) company, the amount of an imputation credit attached to the dividend:

(ii)

if the dividend is paid in relation to shares issued by a company not resident in New Zealand, the amount of foreign withholding tax paid or payable on the amount of dividend.

(iii)
[Repealed]

Defined in this Act: amount, amount of tax, Commissioner, company, dividend, foreign withholding tax, ICA company, imputation credit, non-cash dividend, pay, resident in New Zealand, resident passive income, share

Compare: 2004 No 35 s NF 2(1)(b)

Section RE 13(1B) heading: inserted, on 1 April 2017, by section 266(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RE 13(1B): inserted, on 1 April 2017, by section 266(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RE 13(3)(a) tax rate: amended (with effect from 1 April 2008), on 29 May 2008, by section 45 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Section RE 13(3)(a) tax rate: amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Section RE 13(3)(c)(ii): amended, on 1 April 2017, by section 266(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RE 13(3)(c)(iii): repealed, on 1 April 2017, by section 266(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RE 13 list of defined terms FDP credit: repealed, on 1 April 2017, by section 266(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).