Section LD 4 — Income Tax Act 2007: Tax credits for payroll donations

LD 4 Tax credits for payroll donations Who this section applies to (1) This section applies to a person who— (a) is an employee whose employer— (i) files by electronic means an employer monthly schedule and a PAYE income payment form with particulars relating to the person's PAYE income payments for a pay period; and (ii) agrees to offer payroll giving to their employees; and (b) chooses to make a payroll donation in the pay period from an amount derived as pay. Amount of credit (2) The person has a tax credit for the pay period equal to an amount calculated using the formula— total donations × 33⅓%. Definition of item in formula (3) In the formula, total donations is the total amount of all payroll donations made by the person in the pay period. Maximum credit (4) Despite subsection (2), the amount of the tax credit must not be more than the amount of tax for the person's pay for the period. Non-refundable credits (5) A credit under this section is a non-refundable tax credit to which section LA 4(1) (When total tax credit more than income tax liability) applies for the tax year in which the period falls. No refunds for donations (6) A person who has a tax credit under this section may not make an application under section 41A of the Tax Administration Act 1994 for any refund relating to the amount of a payroll donation. Meaning of pay for payroll donation purposes (7) For the purposes of this section, and sections LD 8(1) and 24Q of the Tax Administration Act 1994, pay , for a person,— (a) means an amount referred to in section RD 5(1)(a) or (b)(i) (Salary or wages); and (b) includes any similar amount earned by an employee in the normal course of their employment; and (c) [Repealed] Defined in this Act: amount , amount of tax , employee , employer , employer monthly schedule , employment , non-refundable tax credit , pay , pay period , PAYE income payment , PAYE income payment form , payroll donation , salary or wages , tax credit Section LD 4: added, on 6 January 2010, by section 323 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section LD 4(7)(c): repealed, on 7 January 2010, by section 74 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).