Income Tax Act 2007

Schedule 1
Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits

  • Schedule 1 heading: amended, on 1 April 2008, by section 554(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Part A
Basic income tax rates

1 Taxable income: general

  • To the extent to which a person does not have a basic rate under clauses 2 to 8, the basic rate of income tax for the person on each dollar of the person’s taxable income is calculated using the formula—

    tax under table 1
    taxable income.

    • (a) tax under table 1 means the total tax, calculated for each dollar in the person’s taxable income, using table 1:

    • (b) taxable income means the number of dollars in the person’s taxable income.

    Table 1
    RowRange of dollar in taxable incomeTax rate
    1$0 – $14,0000.105
    2$14,001 – $48,0000.175
    3$48,001 – $70,0000.300
    4$70,001 upwards0.330

    How to use this table:

    Find the range in the second column for each dollar in the person's taxable income, and apply the relevant rate for the dollar in the third column.

    Schedule 1 part A clause 1: amended (with effect on 1 April 2011), on 2 November 2012 (applying for the 2011–12 and later income years), by section 162(5) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

    Schedule 1 part A clause 1: amended (with effect on 1 April 2011), on 2 November 2012, by section 162(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

    Schedule 1 part A clause 1: amended (with effect on 1 April 2008), on 2 November 2012 (applying for the 2008–09 and later income years), by section 162(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

    Schedule 1 part A table 1: substituted, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 71(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

2 Taxable income: companies

  • To the extent to which a company does not have a basic rate under clauses 3 to 9, the basic rate of income tax for the company on each dollar of the company’s taxable income is 0.28.

    Schedule 1 part A clause 2: amended (with effect on 1 April 2011), on 29 August 2011 (applying for the 2011–12 and later income years), by section 136(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

    Schedule 1 part A clause 2: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

3 Taxable income: trustees

  • To the extent to which a trustee does not have a basic rate under clause 4, 5 or 6, the basic rate of income tax for the trustee on each dollar of the trustee’s taxable income is 0.33.

4 Taxable distribution: non-complying trust

  • The basic rate of income tax on each dollar of a taxable distribution made by a non-complying trust is 0.45.

5 Schedular taxable income: category A income

  • The basic rate of income tax for a trustee on each dollar of the trustee’s schedular taxable income that is for category A income is 0.28.

    Schedule 1 part A clause 5: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

6 Taxable income: trustees of certain funds

  • To the extent to which a trustee does not have a basic rate under clause 4 or 5, the basic rate of income tax on each dollar of taxable income is 0.28 if the income is of a trustee of—

    • (a) an approved unit trust to which the Income Tax Act (Exempt Unit Trusts) Order 1990 applies:

    • (b) a widely-held GIF:

    • (c) a widely-held superannuation fund.

    Schedule 1 part A clause 6 heading: inserted, on 1 April 2008, by section 554(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

    Schedule 1 part A clause 6: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

7 Taxable income: Maori authorities

  • The basic rate of income tax for a Maori authority on each dollar of the Maori authority’s taxable income is 0.175.

    Schedule 1 part A clause 7: amended, on 1 April 2011, by section 136(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

8 Schedular taxable income: schedular policyholder base income

  • The basic rate of income tax for a person on each dollar of the person’s schedular taxable income that is for schedular policyholder base income is 0.28.

    Schedule 1 part A clause 8 heading: amended, on 1 July 2010, by section 577(1)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

    Schedule 1 part A clause 8: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

    Schedule 1 part A clause 8: amended, on 1 July 2010, by section 577(1)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

9 Investment income from portfolio investment entities

  • The basic rate of income tax for a person who is an investor in a PIE on each dollar of income attributed by the PIE is the rate set out in schedule 6 as notified by the person to the PIE.

    Schedule 1 part A clause 9: inserted (with effect on 1 April 2008), on 2 November 2012, by section 162(4) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

    Schedule 1 part A clause 9: repealed (with effect on 1 April 2011), on 2 November 2012, by section 162(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

    Schedule 1 part A clause 9: inserted (with effect on 1 April 2011), on 1 April 2012, by section 136(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

10 Taxable income: New Zealand Superannuation Fund

  • The basic rate of income tax on each dollar of taxable income derived by the Crown through the New Zealand Superannuation Fund is the rate applying to companies set out in clause 2.

    Schedule 1 part A clause 10: inserted (with effect on 1 April 2011), on 2 November 2012 (applying for the 2011–12 and later income years), by section 162(6) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Part B
Low income amount

[Repealed]

  • Schedule 1 part B: repealed (with effect from 1 April 2008), on 29 May 2008, by section 50(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Part C
Basic rates for attributed fringe benefits

  • Table 1

    RowRange of dollar in all-inclusive payTax rate
    1$0 – $12,5300.1173
    2$12,531 – $40,5800.2121
    3$40,581 – $55,9800.4286
    4$55,981 upwards0.4925

    How to use this table:

    Find the range in the second column for each dollar in the person's all-inclusive pay under section RD 51, and apply the relevant rate for the dollar in the third column.

  • Schedule 1 part C table 1: substituted, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 72(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Part D
Basic rates for withholding

Basic rates for ESCT

1 Amount of tax for section RD 67(a)

  • For the purposes of section RD 67(a), the amount of tax is determined by applying the relevant rate given by table 1 to each dollar of an employer’s superannuation contribution.

    Table 1
    RowESCT rate threshold amountTax rate
    1$0 – $16,8000.105
    2$16,801 – $57,6000.175
    3$57,601 – $84,0000.300
    4$84,001 upwards0.330

    How to use this table:

    Find the range in the second column for the last dollar of the ESCT rate threshold amount, and apply the relevant rate in the third column.

    Schedule 1 part D clause 1 heading: amended, on 1 April 2012, by section 136(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

    Schedule 1 part D clause 1: amended, on 1 April 2012, by section 136(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

    Schedule 1 part D clause 1: amended, on 1 April 2012, by section 14(b) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

    Schedule 1 part D table 1: substituted, on 1 October 2010, by section 31 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

    Schedule 1 part D table 1: amended, on 1 April 2012, by section 14(c) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

2 Amount of tax for section RD 67(b)

  • [Repealed]

    Schedule 1 part D clause 2: repealed, on 1 April 2012, by section 14(d) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Basic Rates for RWT

3 Interest: general

  • If clause 4 does not apply, the payment rate for a payment of resident passive income that consists of interest is set out in table 2.

    Table 2
    RowConditionsPayment rate
    1

    The payer of the interest has not been supplied with the tax file number of a person who is paid the interest.

    		0.330
     
    2

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who opens a new account after 31 March 2010 and who is paid the interest; and

    		 
     

    • (b) has not received a payment rate election from the recipient of the interest:

    		 
     

    • (c) is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994.

    		0.330
    3

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who is paid the interest; and

    		 
     

    • (b) has received a payment rate election from the recipient of the interest––

    		 
       

    • (i) before 1 October 2010, choosing the 0.390 or 0.380 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994:

    		 
       

    • (ii) on or after 1 October 2010, choosing the 0.330 payment rate.

    		0.330
    4

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who is paid the interest; and

    		 
     

    • (b) has received a payment rate election from the recipient of the interest––

    		 
       

    • (i) before 1 October 2010, choosing the 0.330 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994:

    		 
       

    • (ii) on or after 1 October 2010, choosing the 0.300 payment rate.

    		0.300
    5

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who has not opened a new account after 31 March 2010 and who is paid the interest; and

    		 
     

    • (b) has not received a payment rate election from the recipient of the interest; and

    		 
     

    • (c) is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994.

    		0.175
    6

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who is paid the interest; and

    		 
     

    • (b) has received a payment rate election from the recipient of the interest––

    		 
       

    • (i) before 1 October 2010, choosing the 0.195 or 0.210 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994:

    		 
       

    • (ii) on or after 1 October 2010, choosing the 0.175 payment rate.

    		0.175
    7

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person, other than a trustee, who is paid the interest; and

    		 
     

    • (b) has received a payment rate election from the recipient of the interest––

    		 
       

    • (i) before 1 October 2010, choosing the 0.125 payment rate, and the payer is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994:

    		 
       

    • (ii) on or after 1 October 2010, choosing the 0.105 payment rate; and

    		 
     

    • (c) the recipient has a reasonable expectation at the time of the election that their income for the income year will be $14,000 or less.

    		0.105
    8

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who is paid the interest as a trustee of a testamentary trust to which section HC 37 applies; and

    		 
     

    • (b) has received a payment rate election from the recipient of the interest––

    		 
       

    • (i) before 1 October 2010, choosing the 0.125 payment rate, and the payer of the interest is not required to use a rate notified by the Commissioner under section 25A of the Tax Administration Act 1994:

    		 
       

    • (ii) on or after 1 October 2010, choosing the 0.105 payment rate.

    		0.105

    How to use this table:

    Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.

    Schedule 1 part D clause 3: amended (with effect on 1 April 2008), on 7 December 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Schedule 1 part D clause 3: amended (with effect from 1 April 2008), on 29 May 2008, by section 50(3) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

    Schedule 1 part D table 2: substituted, on 1 October 2010, by section 32 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

4 Interest: most companies

  • The payment rate for a payment of resident passive income that consists of interest is set out in table 3 if the recipient of the payment is a company that is not a trustee or a Maori authority. However, this restriction does not apply if the trustee is a portfolio investment entity.

    Table 3
    RowConditionsPayment rate
    1

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who is paid interest; and

    		 
     
     

    • (b) has not received a payment rate election from the recipient of the interest, ignoring the receipt of an election for the 0.33 payment rate before 1 October 2010 (if any).

    		0.28
    2

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who is paid interest; and

    		 
     

    • (b) has received a payment rate election from the recipient of the interest, choosing the 0.28 payment rate.

    		0.28
    3

    The payer of the interest—

    		 
     

    • (a) has been supplied with the tax file number of a person who is paid interest; and

    		 
     

    • (b) has received a payment rate election from the recipient of the interest,—

    		 
       

    • (i) on or after 1 October 2010, choosing the 0.33 payment rate:

    		 
       

    • (ii) before 1 October 2010, choosing the 0.39 or 0.38 payment rate.

    		0.33
    4

    The payer of the interest has not been supplied with the tax file number of a person who is paid the interest.

    		0.33

    How to use this table:

    Find the applicable condition, in the second column, in order to find the relevant rate to apply, in the third column.

    Schedule 1 part D clause 4: substituted (with effect on 1 April 2010), on 7 September 2010, by section 120(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

    Schedule 1 part D table 3: substituted (with effect on 1 April 2010), on 7 September 2010, by section 120(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).

    Schedule 1 part D table 3 row 1: substituted, on 1 April 2011, by section 98 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

    Schedule 1 part D table 3 row 2: substituted, on 1 April 2011, by section 98 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

    Schedule 1 part D table 3 row 3: substituted, on 1 October 2010, by section 33 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

    Schedule 1 part D table 3 row 3: amended (with effect on 1 October 2010), on 29 August 2011, by section 136(6) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

    Schedule 1 part D table 3 row 3: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 122(3) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Schedule 1 part D table 3 row 4: substituted, on 1 October 2010, by section 33 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

    Schedule 1 part D table 3 row 4: amended (with effect on 1 October 2010), on 29 August 2011, by section 136(7) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

    Schedule 1 part D table 3 row 4: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 122(3) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

5 Dividends and replacement payments

  • The payment rate for a payment of resident passive income that consists of a dividend, or a replacement payment under a share-lending arrangement, is 0.33.

    Schedule 1 part D clause 5: amended (with effect on 1 April 2008), on 7 December 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

6 Taxable Maori authority distributions

  • The payment rate for a payment of resident passive income that consists of a taxable Maori authority distribution is set out in table 4.

    Table 4
    RowConditionsPayment rate
    1

    The Maori authority makes a taxable Maori authority distribution and does not meet the condition for the 0.33 payment rate in row 2.

    		0.175
     
    2

    The Maori authority:

    		 
     

    • (a) makes a taxable Maori authority distribution that is more than $200; and

    		 
     

    • (b) does not have a record of the tax file number of the member to whom the distribution is made.

    		0.33

    How to use this table:

    Find the applicable condition, in the middle column, in order to find the relevant rate to apply, in the right column.

    Schedule 1 part D clause 6: amended (with effect on 1 April 2008), on 7 December 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Schedule 1 part D table 4 row 1: amended (with effect on 1 October 2010), on 29 August 2011, by section 136(8) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

    Schedule 1 part D table 4 row 1: amended, on 1 April 2011, by section 136(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

    Schedule 1 part D table 4 row 1: amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 122(5)(a) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

    Schedule 1 part D table 4 row 2: amended, on 1 October 2010, by section 34 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

    Schedule 1 part D table 4 row 2: amended, on 1 April 2010 (applying for the 2010–11 and later income years), by section 122(5)(b) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Basic rates for RSCT

  • Schedule 1 part D heading: added, on 1 July 2008, by section 554(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

7 Retirement scheme contributions

  • The payment rate for an amount of a retirement scheme contribution made by a retirement scheme contributor for a person is set out in table 5.

    Table 5
    RowConditionsPayment rate
    1

    The person responsible for withholding RSCT—

    		 
     

    • (a) has been notified under section 28C of the Tax Administration Act 1994 that 12.5 or 10.5 cents in the dollar is the person's retirement scheme prescribed rate; and

    		 
     

    • (b) has been supplied with the tax file number of the person.

    		0.105
    2

    The person is a non-resident and a distribution of no more than $200 is made to them by a retirement scheme contributor that is a Maori authority.

    		0.105
    3

    The person responsible for withholding RSCT—

    		 
     

    • (a) has been notified under section 28C of the Tax Administration Act 1994 that 21 or 17.5 cents in the dollar is equal to or greater than the person's retirement scheme prescribed rate; and

    		 
     

    • (b) has been supplied with the tax file number of the person.

    		0.175
    4

    The person responsible for withholding RSCT—

    		 
     

    • (a) has been notified under section 28C of the Tax Administration Act 1994 that 33 or 30 cents in the dollar is equal to or greater than the person's retirement scheme prescribed rate; and

    		 
     

    • (b) has been supplied with the tax file number of the person.

    		0.300
    5

    When none of rows 1 to 4 apply.

    		0.330

    How to use this table:

    Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.

  • Schedule 1 part D clause 7: added, on 1 July 2008, by section 554(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  • Schedule 1 part D table 5: substituted, on 1 October 2010, by section 35 of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Part E
Shoulder references

The shoulder references for this schedule are the following sections:

CB 28, CD 53, CS 1, EK 8, EK 12, EK 23, EX 20, EX 50, EY 43, FE 22, FM 28, HA 15, HA 24, HC 22, HC 34, HF 1, HL 29, LC 1, LC 2, LE 2, LJ 5, LP 8, LP 10, OA 18, OB 19, OB 42, OB 46, OB 69, OB 73, OB 75, OB 78, OB 80, OC 36, OC 38, OE 7, OE 8, OP 100, OP 102, RD 50, RD 51, RD 66, RD 67, RD 69, RD 70, RD 72, RE 11–RE 19, RF 9, RF 12, RM 21, YA 1.

  • Schedule 1 part E: amended (with effect on 30 June 2009), on 6 October 2009, by section 577(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).