Income tax Dates
Before you start
You'll need:
- your company's IRD number
- the total amount of deducted tax you're transferring to the company's shareholder-employees
- IRD numbers for each of those shareholder-employees
- the amounts of deducted tax you're transferring to each shareholder-employee
- the total schedular payments made to the company.
In myIR, go to your income tax account
This is on the homepage once you've logged in under your company's account.
Select 'More...'
Select 'File or amend a return'
You'll find this under 'Payments, refunds and returns'.
Select your company's income tax return - IR4
Follow the prompts to file your return and show schedular tax deducted.
Make sure your company does not claim the tax credits being transferred to employee-shareholders.
Update your company's imputation credit account
Follow the prompts for updating your company's imputation credit account (ICA).
The amount of tax you're transferring to the shareholder-employees needs to be recorded as a debit entry.
To update your company's ICA separately from your company's income tax return - IR4, file an Annual imputation return - IR4J.
File an Annual imputation return - IR4J
Send us a note in myIR
Send us a message in myIR. For each shareholder-employee, you'll need to show:
- their name
- their IRD number
- how much tax you transferred.
We cannot transfer the tax without these details.
Log in to myIR
You can also use the paper form of the Companies income tax return - IR4.
- Use Boxes 10 and 10A if you're using the IR4 to update your company's imputation credit account.
- In Box 12A, reduce the amount of tax credits by the amount you're transferring to shareholder-employees.
- You'll still need to include the total schedular payments made to the company in Box 12B.
- In Box 17A, make sure that the company does not claim the tax credits being transferred to shareholder-employees.
- Attach a note with the return, showing the names, IRD numbers and how much tax is being transferred to each shareholder-employee.
What happens next
We'll make the transfer when we process your company's income tax return - IR4. If your company updates its imputation credit account separately, we'll make the transfer when we get the IR4J form.
The shareholder-employees being transferred tax must record this amount in their Individual income tax returns - IR3.
Claim tax credits as a shareholder employee
Your responsibilities
Your company cannot transfer more tax than was deducted from its schedular payments.
You'll also need to make sure your company is eligible to transfer tax credits to shareholder-employees.
Transferring tax deducted from schedular payments to shareholder-employees