Section RE 13 — Income Tax Act 2007: Dividends other than non-cash dividends

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. 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) if the dividend is paid in relation to shares issued by a company resident in New Zealand, the amount of an FDP credit attached to the dividend. Defined in this Act: amount , amount of tax , Commissioner , company , dividend , FDP credit , 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(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).