IR9 Question 18 Tax calculation

Incorporated bodies

are taxed at 28 cents in the dollar, and
may be provisional tax payers, and so may have to make provisional tax payments—see IR9 Question 20 Initial provisional tax liability.

Unincorporated bodies

are assessed at individual tax rates but are not entitled to independent earner tax credits, and
may be provisional tax payers, so may have to make provisional tax payments—see IR9 Question 20 Initial provisional tax liability.

If your organisation is an unincorporated body, calculate the tax on its taxable income using these rates.

Income thresholds	Income tax rates for the 2019 income year
$0 – $14,000	10.5%
$14,001 – $48,000	17.5%
$48,001 – $70,000	30.0%
$70,001 +	33.0%

Claim any tax deducted from income paid to the organisation in Box 18A, 18C, 18G or 18I as appropriate.

Box 18D Excess imputation credits brought forward

If your organisation is unincorporated and had unused imputation credits in the 2018 return, they were unable to be refunded and must be brought forward and claimed against this year’s tax payable. You can find the amount of excess imputation credits to be brought forward to 2019 in the “Loss/excess imputation credits carried forward” letter Inland Revenue sent you after your 2018 income tax return was assessed.

Print the amount in Box 18D of your return. Add up your total imputation credits from Boxes 18C and 18D and print the total in Box 18E.

Box 18E Imputation credits

If the imputation credits at Box 18E are greater than the amount in Box 18B, the difference can’t be refunded.

If the organisation is an incorporated body, the excess imputation credits must be converted to a loss and carried forward. To do this, divide the difference between Boxes 18B and 18E by 0.28. Inland Revenue will send you a letter confirming the amount of net loss carried forward to the 2020 return.

If the organisation is an unincorporated body, the difference between Boxes 18B and 18E must be carried forward to the 2020 return and credited against the tax liability. Inland Revenue will send you a letter confirming the amount of excess imputation credits carried forward.

Box 18GG Residential land withholding tax (RLWT) credit

If the organisation is an “offshore RLWT person” and has sold or transferred residential property located in New Zealand, RLWT may have been deducted from the sale price. The organisation should have received a statement on the completion of the sale process showing the amount of RLWT deducted. The organisation can claim a credit for any RLWT deducted. Show the amount of RLWT deducted, less any RLWT paid back to the organisation and/or transferred to outstanding amounts during the income year.

If there was more than one amount of RLWT deducted, show the combined amount, less any RLWT paid back to the organisation and/or transferred to outstanding amounts during the income year.