                                                          IR3G
                                                       March 2026




           Individual income tax
                    return guide
                                                      2026
Please read page 5 to see if you need to file this return.
 Complete and send us your IR3 return by 7 July 2026,
     unless you have an extension of time to complete
                       or a non-standard balance date.
                      The information in this guide is based on
                       current tax laws at the time of printing.




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ird.govt.nz
Go to our website for information and to use our services and tools.
• Log in or register for myIR - manage your tax and entitlements online.
• Calculators and tools - use our calculators, worksheets and tools. You can check your tax code, find
    filing and payment dates and calculate your student loan repayment.
• Forms and guides - download our forms and guides.

Forgotten your user ID or password
Request these from the myIR login screen and we'll send them to the email address we hold for you.

How to get our forms and guides
You can get copies of our forms and guides at ird.govt.nz/forms-guides

Nominate someone to act on your behalf
You can nominate someone to act on your behalf to help you with your tax and entitlements. You can
do this in myIR.
Having a nominated person does not change your responsibilities. You are still personally responsible for
your tax obligations.
3                                                                                                                             IR3G INDIVIDUAL RETURN GUIDE



Contents
ird.govt.nz.....................................................................................................................................................................................2
How to get our forms and guides....................................................................................................................................2
Nominate someone to act on your behalf.................................................................................................................2
Do you need to complete an IR3 return?.................................................................5
Children's exempt income...................................................................................................................................................6
Extension of time......................................................................................................................................................................7
Are there any penalties?........................................................................................................................................................7
Income year.................................................................................................................................................................................7
Individual tax return or Estate income tax return..................................................................................................7
Using this guide...............................................................................................................8
Questions 1 to 5 Personal information.........................................................................................................................8
Question 6 Business industry classification (BIC) code.......................................................................................8
Question 8 Bank account number..................................................................................................................................9
Question 9 Adjustments to your income...................................................................................................................9
Question 10 Non-residents and transitional residents........................................................................................9
Your income.................................................................................................................. 11
Question 11 Income with tax deducted................................................................................................................... 11
Question 12 Schedular Payments................................................................................................................................. 14
Question 13 New Zealand interest.............................................................................................................................. 15
Question 14 New Zealand dividends.......................................................................................................................... 17
Question 15 Māori authority distributions............................................................................................................. 18
Question 16 Estate or trust income............................................................................................................................ 18
Question 17 Overseas income........................................................................................................................................ 19
Question 18 Partnership income.................................................................................................................................. 26
Question 19 Look-through company (LTC) income.......................................................................................... 27
Question 20 Shareholder-employee salary.............................................................................................................. 28
Question 22 Income and expenses from residential property..................................................................... 29
Boxes 22E to 22I in your return...................................................................................................................................... 32
Question 23 Income from other rental activities................................................................................................. 34
Question 24 Self-employed income............................................................................................................................ 34
Question 25 Income from taxable sales or disposals of property.............................................................. 36
Question 26 Government subsidy............................................................................................................................... 36
Question 27 Other income.............................................................................................................................................. 37
Question 29 Other expenses and deductions....................................................................................................... 38
Question 31 Net losses brought forward................................................................................................................. 39
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Your tax credits............................................................................................................ 40
Question 33 Independent earner tax credit (IETC)............................................................................................ 40
Question 34 Excess imputation credits brought forward............................................................................... 42
Question 35 Portfolio Investment Entity calculation........................................................................................ 42
Tax on taxable income........................................................................................................................................................ 43
Question 36 Tax calculation............................................................................................................................................ 44
Excess imputation credits carried forward.............................................................................................................. 45
Question 37 Early payment discount......................................................................................................................... 47
Question 38 Refunds and/or transfers....................................................................................................................... 50
Transfers...................................................................................................................................................................................... 50
Provisional tax.............................................................................................................. 51
Question 39 Provisional tax............................................................................................................................................. 51
Initial provisional tax liability.......................................................................................................................................... 51
Payment options.................................................................................................................................................................... 52
Question 40 Foreign rights disclosure........................................................................................................................ 53
Question 41 Is your return for a part-year?............................................................................................................. 54
Question 42 Notice of assessment and declaration........................................................................................... 54
Paying your tax........................................................................................................................................................................ 54
Your record of payment..................................................................................................................................................... 55
ACC personal services rehabilitation payments................................................................................................... 56
If you are an ACC client...................................................................................................................................................... 58
Accident Compensation Act 2001 (ACC)................................................................................................................ 60
Services you may need................................................................................................ 62
Need to speak with us?....................................................................................................................................................... 62
0800 self-service number................................................................................................................................................... 62
If you have a complaint about our service.............................................................................................................. 62
Privacy.......................................................................................................................................................................................... 62
5                                                                      IR3G INDIVIDUAL RETURN GUIDE


Do you need to complete an IR3 return?
If we've sent you a message to complete your Individual income tax return - IR3 in myIR, or a paper
copy by post, you must complete the return and send it to us by 7 July 2026, unless you have an
extension of time or a non-standard balance date. If you do not need to complete a return but you'd
like to talk to someone about your tax situation, you can call us.

    Note
    To help you work out if you need to complete an IR3, go to ird.govt.nz/end-of-tax-year or call us on
    0800 377 774.
If you received any other income apart from salary, wages, schedular payments, interest, dividends (see
further information below), and/or taxable Māori authority distributions, you must complete an IR3
return. There are some exceptions. If you received personal service rehabilitation payments and are an
ACC client or caregiver (who received payments from the client or ACC), read page 63.

    Note
    If you had a workplace injury your employer may manage these payments instead of ACC. If you
    or your caregiver receives these payments, regardless of who makes them, you'll need to read the
    information on page 63.

Other income includes:
• self-employed income (see children's exempt income below)
• income derived overseas - calculated taxable income arising from a withdrawal or transfer from
   foreign superannuation schemes acquired while a non-resident of New Zealand
• over $200 in total of income that has not been reported to us such as:
   – interest derived overseas (if it has had tax deducted or not)
   – dividends of certain Australian resident listed companies and other overseas investments that are
      not treated as part of foreign investment funds (FIF) income - see page 22
   – employment income, schedular payments or employee share scheme income
   – income from a PIE for example you are 1 of the joint holders of a PIE investment that is not under
      your IRD number
• FIF income
• rental income
• estate, trust or partnership income
• royalties
• cash jobs or ‘under the table’ payments
• income from illegal enterprises, and
• income without PAYE deducted, such as shareholder-employee salary or a claim received under a
   taxable loss of earnings policy.
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Situations requiring an IR3 return include:
• You left or arrived in New Zealand part-way through the year and earned more than $200 of other
    income during the year or have New Zealand sourced income while you were not a New Zealand tax
    resident. You must also provide your New Zealand arrival and departure dates.
• You are looking after the estate of someone who has died and there is a requirement to complete
    a final income tax return. You can contact us to find out if a final income tax return or automatic
    assessment is required.
• You were declared bankrupt and do not meet the criteria to receive an automatic assessment.
• You changed your balance date part-way through the year. You must file an IR3 to account for the
    non-standard income period.

Children's exempt income
Read this information if for the tax year you:
• were 14 or under
• were 15, 16 or 17 and still attending school*, or
• turned 18 on or after 1 January in the previous tax year and continued to attend school*
* including a school for people with disabilities, but excluding tertiary institutions.
The following income is required to have tax taken out before you receive it:
• salary or wages
• schedular payments
• interest
• dividends, and
• Māori authority distributions.
If you only receive these types of income you will not need to complete an IR3. However, if you are
required to complete an IR3 return this income needs to be included.
You may receive income that has not had tax taken out before you get it for example:
• worked as a self-employed person
• worked around the home of a neighbour or family friend, and that work was not part of a business
     that they carry on.
If your total income from these sources is less than $2,340 for the tax year, this income is exempt from tax
and is not included in your return. You are not required to complete a return just because you earn this
type of income. If you earn $2,340 or more, the exemption does not apply and you will need to complete
a return and pay tax on all the income, not just the amount that exceeds the exemption.
If you have to complete a return but we have not sent you an IR3, you must request and complete it by
7 July 2025, unless you have an extension of time or a non-standard balance date.
Contact us to request an IR3 return. You can do this in myIR.
7                                                                      IR3G INDIVIDUAL RETURN GUIDE


Extension of time
If circumstances beyond your control will prevent you from sending in your return on time, call us on
0800 377 774 and we may grant you an extension. If you have a tax agent you may have until 31 March
2026 to complete the return. Contact your agent for more information.

Are there any penalties?
You may face penalties and prosecution if you:
• are required to put in a return but do not
• give false or misleading information (including not showing all your income)
• leave out details on purpose so the information is misleading
• complete your return late.

Income year
The information in this guide is based on the tax year from 1 April 2025 to 31 March 2026. If your income
year is different you can still use this guide, but work out your income and expenses for your income year.

Individual tax return or Estate income tax return
Generally, income received up till the time of a person’s death is included in the individual tax return
with income received after death included in an Estate income tax return.
However there is a choice whether reportable income (for example salary, benefit, pension or interest)
received 28 days after a person’s death is all included in this Individual tax return or in an Estate income
tax return.
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Using this guide
Did you know you can also complete your return online? Go to ird.govt.nz/myIR
The form will prepopulate with your personal details and earnings information.
Before you start filling in the return make sure you have:
• any interest or dividend statements
• any taxable Māori authority distribution statements, and
• any other income details, such as overseas, rental property, farming or business income.
The questions in this guide are in the same order as the questions on the return.
Do not use anyone else's preprinted return because it is precoded with their own IRD number.

Questions 1 to 5 Personal information
This information helps us to contact you. Please make sure we have your details correct. If you have
changed your name or address, update the information in the spaces provided on the return. You can
also update your personal information in your myIR account.

Postal address
If you use your tax preparer’s postal address leave this panel blank. Your tax preparer will let us know if
they've changed their address.
If your address is a PO Box number, show your box lobby if you have one. If you are unsure of your box
lobby please contact New Zealand Post.

Date of birth
We ask for this so we do not mix up people with the same name.

Question 6 Business industry classification (BIC) code
We're required to supply the Accident Compensation Corporation (ACC) with a code for your business
or trading activity, for levy classification and calculation.
If your BIC code is not preprinted on the return or is different from the preprinted one, enter the correct
code.
To work out your main business or trading activity and its code, go to businessdescription.co.nz
It is important that you choose the code which most accurately reflects your main business or trading
activity. If you are unable to identify the correct code, call ACC on 0800 222 776 for more help.

 Note
 Please provide the code only. Do not provide a description. If you do not complete your BIC code,
 ACC will select one on your behalf. This may mean your ACC levy rate could be incorrect.
9                                                                        IR3G INDIVIDUAL RETURN GUIDE


Question 8 Bank account number
The fastest and safest way to get any refund is to have it direct credited to your New Zealand bank
account or other deposit account, for example, a building society account. If your bank account number
is not preprinted on the return, include it at Question 8.
If your suffix has only 2 digits, enter them in the first 2 boxes.

Question 9 Adjustments to your income
If you have a student loan or you’re eligible for Working for Families Tax Credits (WfFTC), you may need
to include adjustments to your income. This is so we can correctly assess your student loan repayment
obligation and make sure you receive the right WfFTC entitlement. Find out more about adjusting your
income at ird.govt.nz/adjust-income
To let us know about your income adjustments you can:
• complete it in your myIR account
• call us on 0800 227 774, or
• tick 9A on your IR3, complete and attach an Adjust your income - IR215 form to your income tax
    return.
If you need a IR215 form, you can download it from ird.govt.nz/forms-guides or call us on 0800 257 773.

What do I need to do to receive my entitlement?
If you have not already registered for WfFTC, you can find out if you qualify and register online at ird.
govt.nz/working-for-families
Once you’re registered, we’ll send you a notice of entitlement with all your family details for you to check.
Please let us know if anything is incorrect. For more information about the notice of entitlement go to
ird.govt.nz/noe
If you’re already registered and you need to file an IR3, we may send you a letter showing your family
details. You’ll receive this by the beginning of May. Please let us know if any of the details are incorrect.

Question 10 Non-residents and transitional residents
Non-residents
If you were away from New Zealand for more than 325 days in any 12-month period and do not have a
‘permanent place of abode’ in New Zealand, you may be a non-resident. Read our guide New Zealand
tax residence - IR292 to find out your status. If you were not present in New Zealand and are a
non-resident for a full year, but you received income from New Zealand, you may need to complete an
IR3NR return instead.
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Transitional residents
If you became a New Zealand tax resident during the year and you've elected not to be treated as a
transitional resident, you have to complete an IR3 declaring your worldwide income from the date you
became a New Zealand tax resident.
Transitional residents do not have to declare their foreign-sourced income except for foreign
employment income and foreign services income.
If you were a non-resident for part of the year, complete Question 41 on your return.
If your return is not for a full year, we'll calculate your tax and income-related tax credits and let you know
the result - see ird.govt.nz/tte for more information.
11                                                                  IR3G INDIVIDUAL RETURN GUIDE



Your income
If you received family tax credit from Work and Income, salary, wages or schedular payments, the
information you need to complete Questions 11 and 12 will be on your Summary of Income (SOI),
which we'll send you in May each year. We send this automatically if we send you an IR3 return.
Your SOI contains the following information:
• all your employers throughout the year
• your total gross income with tax deducted and ACC earners' levy paid
• any family tax credit paid by Work and Income, and
• your tax credits for payroll donations you've made through payroll giving.

Question 11 Income with tax deducted
Did you receive any of these types of income with tax deducted between 1 April 2025 and 31 March
2026?
• salary or wages
• a student allowance
• any main benefit - unemployment or sickness, transitional retirement, independent youth, domestic
    purposes, widow's, invalid's or emergency
• accident compensation payments related to earnings
• New Zealand Superannuation (NZ Super) either income-tested or non-income tested, or a veteran's
    pension
• other pensions, annuities or superannuation (read ‘Pensions’ on page 14)
• free or discounted shares received under an employee share scheme (previously known as a share
    purchase agreement). Note: it is up to your employer whether they deduct tax on these or not
• shareholder-employee salary.
If you received any of these types of income with tax deducted, you need to copy the totals from your
SOI to Boxes 11 if they do not already show on your return.

Backdated lump sum income from MSD, ACC or Veteran’s Affairs
If you received certain backdated lump sum income from MSD, ACC or Veteran’s Affairs, do not include
these amounts at this question. Instead attach your SOI, showing these amounts, to your return. We will
include this income in your return and advise you of any change to your tax to pay or refund.
You can file your return in myIR to include the backdated lump sum income as you file and see your
result immediately.
Tax on backdated lump sum payments from MSD is final tax. There is no further tax to pay or refund.

Employee Share Scheme (ESS) benefits
If you received free or discounted shares through an ESS, the taxable amount will show on your SOI if
your employer has reported it.
If it’s not shown, check with your employer whether they’ve provided this information, or if you need to
enter it at Question 28.
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ESS shares are generally recognised as income 20 days after issue. Your employer may deduction PAYE.
Whether or not PAYE is deducted, you must still include the income in your tax return for that year.
If your employer has elected to designate the shares as employee deferred shares, they will advise you and
the tax will be deferred until an event such as when the company is listed on a stock exchange. Refer to
ird.govt.nz/tax-ess for more information.
If you (or an associate) received free or discounted shares under an ESS the taxable value will be included
on your SOI as long as your employer has provided us with this information.
In most cases your employer will have provided this information but if they have not, you will need to
show the taxable value at Question 28.

What to show in your return
Copy the total amounts from your SOI to the corresponding boxes (11A, 11B, 11C, 11D and 11E) on your
return if it does not already show.

Amending your income details
If any of the details on your SOI are incorrect (for example wrong or missing employers), please make the
changes on your SOI and attach it to your income tax return.
You only need to attach your SOI to your income tax return if you've made changes to it.
Transfer the amended totals from your SOI to the corresponding boxes on your return and use the
worksheet on page 13 to calculate your total tax deducted (11E).

ACC earners' levy
All employees must pay an ACC earners' levy to cover the cost of non-work related injuries, based
on their earnings. We collect this on behalf of the Accident Compensation Corporation (ACC). The
maximum amount of earners' levy is $2,551.59. The earners' levy is set at a rate of 1.67% (1.67 cents in
the dollar).
If you need to amend your employment details on your SOI, you'll need to recalculate your earners' levy.

Using employer-provided information
If you received payslips or other earnings information from your employer, you can use this information
to complete your return and do not have to wait for your SOI. You do not include schedular payments in
this calculation.
You'll need to use your total PAYE deducted in your calculations. This is the amount of PAYE shown on
your payslips before any tax credits for payroll donations are deducted.
If you made donations through payroll giving to an organisation that is not on Inland Revenue's
approved donee organisations list, you will not be able to keep the tax credits you received and you will
not have paid enough PAYE throughout the year. You'll have either received a letter telling you about
these extinguished tax credits or they'll show on your summary of income. Put the total PAYE, less the
amount of your extinguished tax credits, in Box 11A.
If the amount of total PAYE deducted is not clear from your payslips:
• contact your employer
• refer to your SOI for details
• refer to Earning summary in the My Income tab in myIR, or
• call us on 0800 227 774.
13                                                                      IR3G INDIVIDUAL RETURN GUIDE


You'll need to calculate your ACC earners' levy liability and deduct it from your total PAYE, using the
worksheet below.

     Worksheet for ACC earners' levy
     Copy your total taxable earnings from salary and wages to
     Box 1. Copy the amount to Box 11B of your return.
                                                                    1

     Copy your taxable earnings from salary and wages that
     are not liable for earners' levy to Box 2. See below for a
                                                                    2
     list of income not liable. Copy this amount to Box 11C of
     your return.

     Subtract Box 2 from Box 1. Print the answer in Box 3.
     If the answer exceeds the maximum liable earnings of
                                                                    3
     $152,790, print $152,790 in Box 3.

     This is your liable income for ACC earners' levy

     Multiply Box 3 by 0.0167 (1.67%). Print your answer in
     Box 4. This is your ACC earners' levy. Copy this amount to
                                                                    4
     Box 11D of your return.

     Copy your total PAYE from salary and wages to Box 5.
     Copy this amount to Box 11A of your return.
                                                                    5

     Copy your total ACC earners' levy from Box 4 (above) to
     Box 6.
                                                                    6

     Subtract Box 6 from Box 5 and print the answer in Box 7.       7
     This is your total tax deducted. Copy this amount to Box 11E of your return.


The following income is not liable for ACC earners' levy
-    NZ Super                                     -   income from a partnership earned by a non-working
-    income-tested benefits                           partner in that partnership
-    non-taxable allowances                       -   pensions from superannuation schemes not registered
-    student allowances                               with the Financial Markets Authority
-    veteran's pension                            -   overseas pensions
-    living alone payments                        -   rents
-    redundancy payments                          -   estate and trust income
-    retiring allowances                          -   royalties
-    jury and witness fees                        -   income attributed to you from a portfolio investment
-    interest and dividends                           entity (PIE)
-    taxable Māori authority distributions        -   income arising from a withdrawal from foreign
-    free or discounted shares received under         superannuation schemes.
     an employee share scheme
ird.govt.nz                                                                                               14


Pensions
Do not include the following pensions or annuities in your tax return:
• non-taxable pensions or annuities from either life insurance funds or superannuation schemes
   registered with the Financial Markets Authority (for example Government Superannuation)
• pensions that are completely tax-free, such as war pensions (other than a veteran's pension).
Any overseas social security pension you receive is usually taxable. Include it at Question 17 (see the
notes on page 24).
If you receive a United Kingdom national retirement pension and have joined the special banking
option operated by Work and Income, only include the New Zealand Super income and tax deducted at
Question 11A.
For more information read our guides Overseas pensions and annuity schemes - IR257 or Overseas
social security pensions - IR258.

Question 12 Schedular Payments
If you only earned schedular payments during the year, you are not required to file an IR3 return. We
will calculate your income tax for you, based on the information we hold at that time. We will send you
a letter, titled “Information required to complete income tax assessment”. This gives you the chance to
claim any expenses related to your schedular payments.

ACC personal service rehabilitation payments
If you are an ACC client or caregiver and received ACC personal service rehabilitation payments, read the
information on page 63 before you complete Question 12.

Box 12A Total tax deducted
This is the total amount of tax deducted from schedular payments you received during the year.
The amount in this Box should also include any amount of tax deducted from schedular payments made
to a close company which has been transferred directly to you as a shareholder-employee.

Box 12C Expenses related to schedular payments
Show any expenses you can claim against this income here. Do not include it with other expenses at
Question 29.

Box 12D Net schedular payments
This is the total gross schedular payments shown at Box 12B, less any expenses being claimed at Box 12C.

Mineral mining tax credit
Include in Box 12A the amount of refundable tax credit being claimed where a tax loss is incurred on
disposal of land or claiming rehabilitation expenditure. Include the amount of tax loss in Box 12D.
15                                                                    IR3G INDIVIDUAL RETURN GUIDE


What to show in your return
Copy the total tax deducted (Box 12A) and gross payments (Box 12B) from your SOI to the same box
numbers of your return. Add up the expenses related to your schedular payments and print the total in
Box 12C. Subtract Box 12C from Box 12B and print the result in Box 12D.
If your employer received and passed on the wage subsidy as part of your schedular payments with tax
deducted at source no further action is required for this wage subsidy receipt.
If your employer received the wage subsidy and passed this on to you without tax deducted at source
you will need to include the amount in the government subsidies box at Question 26.

 Note
 If you are registered for GST, your gross schedular payment may include GST. Enter the GST-exclusive
 amount at Question 12B.

Shareholder-employee salary
If you received a shareholder-employee salary with no PAYE deducted, show the amount at Question 20.

ACC levies
You'll have to pay ACC levies on schedular payments. ACC will invoice you for these.

Question 13 New Zealand interest
Did you receive any New Zealand interest between 1 April 2025 and 31 March 2026 from:
• banks
• Inland Revenue
• building and investment societies
• credit unions
• securities
• a partnership, look-through company, estate or trust, or
• loans you've made.
Show all the New Zealand interest you received at Question 13B. If the interest is from a partnership,
look-through company, estate or trust please tick Box 13C.
If you were charged commission on any of your interest, claim this at Question 29. Read the note about
expenses on page 39.

Interest on broken term deposits
If you've broken a term deposit during the year, you may have ‘negative interest’ to account for. This is
interest you've repaid on the term deposit. It may reduce the amount of interest you need to declare on
your tax return.
If you broke the term deposit in full, use the worksheet on page 16 to deduct the negative interest from
the gross interest amount shown on your RWT withholding certificate or equivalent statement. In all
other cases, the negative interest is deductible in a later tax return when the term deposit matures.
ird.govt.nz                                                                                                 16


  Worksheet
  Copy your gross interest from your RWT withholding                1
  certificate to Box 1.
  Print any negative interest you've paid in Box 2.                 2
  Subtract Box 2 from Box 1 and print the answer in Box 3.          3
  Include this in the amount shown at Box 13B.

RWT
During the year, RWT will have been deducted from some or all of your interest and you can claim a
credit for this.
The interest payer will usually send you a RWT withholding certificate or similar statement which shows
the gross interest paid and the amount of RWT deducted.
Add up the amounts from each statement or certificate and print the totals in Boxes 13A and 13B.
Do not send us your interest statements with the return. Keep these in case we ask for them later.

Interest of $50 or less
If the interest you received for the year is $50 or less, you may not receive a certificate or statement, but
you still need to show the gross interest and RWT. Get the details from your bank statements.

Interest on joint accounts
If you hold a joint account, you must show your share of the interest in your tax return.

Interest from overseas
If you received interest from overseas, convert your overseas interest and tax credits to New Zealand
dollars and show the amounts at Question 17. Read the notes about overseas income on page 19.

Farm vendor mortgage or finance bonds
If you received interest from a farm vendor mortgage or farm vendor finance bonds approved by the
Rural Banking and Finance Corporation of New Zealand, only half of the interest is taxable. Show the
RWT deducted and the taxable amount of interest in Boxes 13A and 13B.

Income from financial arrangements
If you are a party to a financial arrangement, such as government stock, local authority stock, mortgage
bonds, futures or deferred property settlements, you may have to calculate the income or expenditure
from the financial arrangement using a spreading method, rather than on a cash basis. To determine
whether a spreading method must be used, see ‘Financial arrangements’ on page 37.
If the financial arrangement matures, is sold, remitted or transferred, a ‘wash-up’ calculation, known as a
base price adjustment, must be made.
Any RWT will have to be deducted on a cash basis. Show the RWT deducted and any income from the
financial arrangement in Boxes 13A and 13B.
17                                                                     IR3G INDIVIDUAL RETURN GUIDE


Interest paid or charged by Inland Revenue
If we paid you interest, include it in Box 13B in the income year you received the interest.
If you paid us interest, include it as a deduction at Question 29 for the income year the interest is paid.

Question 14 New Zealand dividends
Dividends are a part of a company's profits that it passes on to its shareholders. Unit trusts are treated as
companies for income tax purposes and unit trust distributions are treated as dividends.
Complete Question 14 if you received any New Zealand dividends between 1 April 2025 and 31 March
2026, including dividends from your local electricity or gas company (but do not include a dividend
that is a distribution of the trust's capital and is tax-free). The company or unit trust that paid you the
dividend will send you a dividend statement.
Include dividends earned by a partnership or estate, or distributed by a trust.
If you were charged commission on any of your dividends, claim this at Question 29. Read the notes
about expenses on page 39.
If you receive dividends from a portfolio investment entity (PIE) that is a listed company and does not
use your prescribed investor rate, you can decide whether or not to include the dividends in your return.

Credits attached to dividends
A New Zealand company or unit trust may attach several types of credits to dividends.
‘Imputation credits’ are credits for part of the tax the company has already paid on its profits so the
dividends are not taxed twice.
RWT is deducted from your dividend to bring the total credits withheld up to 33% of the gross dividend.
If the dividend is from a listed PIE, it should not have RWT deducted.

What to show in your return
Your dividend statements show the amount:
• you received (net dividend)
• of any imputation credit, and
• of any RWT credits.
Add all these amounts together to work out your gross dividend.
Add up all the imputation credits, RWT credits and gross dividend totals and transfer them to the
relevant boxes at Question 14.
If the dividends are from a partnership, look-through company, estate or trust, please tick Box 14C.
Do not send us your dividend statements, keep them in case we ask for them later.
ird.govt.nz                                                                                                  18


Shares and other non-cash dividends
If you received shares from a taxable bonus issue or a non-cash dividend , include them as income at
Question 14.

Dividends from overseas
Please read the notes about overseas income on page 19.

Question 15 Māori authority distributions
Complete Question 15 if you received taxable Māori authority distributions between 1 April 2025 and
31 March 2026. The Māori authority that paid you the distribution will send you a Māori authority
distribution statement.

Credits attached to distributions
The Māori authority may attach a credit to the distribution it makes to members. This credit will be
classified as a Māori authority credit and includes tax the Māori authority has already paid on its profits.

What to show in your return
Your Māori authority distribution statement shows the amount of:
• the distribution made to you, including which portion is taxable and which portion is not, and
• the Māori authority credit.
Transfer these amounts, not including any non-taxable distribution, to the relevant boxes at Question 15.
For more information read our guide Māori authorities - IR487.

Question 16 Estate or trust income
If you received estate or trust income that relates to the year 1 April 2025 to 31 March 2026, show it at
Question 16.
There are 3 types of estates or trusts:
• complying
• foreign, and
• non-complying.
Complying trusts are trusts that have been taxed in New Zealand on all their income since the day they
started.
Allocations of beneficiary income which the minor beneficiary rule applies to are taxed as trustee income.
This means the trust is subject to tax on this income at 39 cents in the dollar, and it is included in the
trustee tax calculation in the trust's IR6 return.
These distributions should not be included in the minor's individual tax return.
Reportable income received up to 28 days following a person’s death can be included in either the
Individual tax return to date of death or in the Estate income tax return.
Reportable income received up to 28 days following a persons death can either be included in the IR3
income return to date of death or alternatively in the IR 6 estate income return.
19                                                                       IR3G INDIVIDUAL RETURN GUIDE


All other trusts are non-complying or foreign. Read our guide Trusts' and estates' income tax rules -
IR288 for more details.

What to show in your return
Add up the tax paid by the trustee/s and print the total in Box 16A. Print your share of the estate or
complying trust income in Box 16B.
But, if your estate or trust income includes:
• interest with RWT deducted, show this at Question 13 and tick 13C
• dividends with imputation credits attached, show this at Question 14 and tick 14C
• taxable Māori authority distributions, show this at Question 15, or
• overseas income and overseas tax paid, show this at Question 17.
If you received a wage subsidy payment from the Trust which did not have tax deducted at source you
will need to include the amount in the government subsidies box at Question 26.

Income from foreign and non-complying trusts
If you are a beneficiary of a foreign or non-complying trust please complete a Schedule of beneficiary's
estate or trust income - IR307 form.

Taxable distributions from non-complying trusts
Copy the amount of taxable distributions from the non-complying trust to Box 16C and attach the IR307
to your income tax return.
We separate taxable distributions from non-complying trusts because they're taxed at a different rate.
If you have this type of income, your tax calculation at Question 36 may not be correct. We'll do this
calculation for you and send you a notice of assessment.

Question 17 Overseas income
If you received income from, or while you were overseas, between 1 April 2025 and 31 March 2026, then
you must complete an Overseas income summary – IR1261 form and submit it with your income tax
return. Convert all overseas income and tax credits to New Zealand dollars, you can do this by:
•   using the rates tables on our website ird.govt.nz/managing-my-tax
•   contacting the overseas section of a trading bank and asking for the exchange rate for the day you
    received your overseas income.
Overseas income includes taxable income from withdrawals and transfers from foreign superannuation
schemes while you were a non-resident of New Zealand. Transitional residents must include any foreign
employment or service income.
If you received overseas income from a look-through company (LTC), estate, trust, or partnership you will
need to confirm the details with them. You must provide all the required information to claim overseas tax
credits.
Total the gross amounts of overseas income on your IR1261 and show it at Box 17B on your IR3 return. Total
the tax credits on your IR1261 and show it at Box 17A on your IR3 return.
On your Overseas income summary – IR1261 form, you will need to:
•    complete a separate section for each jurisdiction and for each income type, even if they are from the
     same jurisdiction. The jurisdiction is the country or territory you have received overseas income from.
•    Include your claimable overseas tax credits, for more information refer to ‘Tax paid overseas’ on page 22.
ird.govt.nz                                                                                                                                        20
                                                      Overseas income summary                                                              IR1261
                                                                                                                                           March 2023



 Example
                                                                          Year ended
 Mark’s total taxable income is $70,000. This amount includes $5,000 of overseas     31 March
                                                                                 income  from:
      Australian
 • • You  only needBank      A - Interest
                      to complete   this form$700
                                               if you(taxed  at 10%*);
                                                      have received      taxincome.
                                                                    overseas   paid $70
 • • Take   a copy forBank
      Australian       your records  and attach
                             B - Interest    $550this  completed
                                                    (taxed        form, as
                                                             at 10%*);     well
                                                                         tax    as proof
                                                                              paid  $55of overseas tax paid and a letter
     detailing any overseas losses to your IR3 return.
      Australianyou
 • • Alternatively   Company       A – this
                          can complete   Foreign
                                              form inemployment
                                                       myIR as part of$3,000
                                                                       your tax(taxed
                                                                                return. at 30%); tax paid $900, claimable tax
      credit
   • Refer      based
             to the notesonontotal taxable
                              the next page forincome     $600.86
                                                  help with completing this form.
 • Hong Kong Bank A - Interest $750 with no tax paid
   Your full name
 *10% is the maximum tax rate, as per New Zealand’s double tax agreement (DTA) with Australia.
   Your IRD number                  (8 digit numbers start in the second box.                )
 Mark’s completed Overseas Income Summary - IR1261:

   Income type                                 1          Interest

   Jurisdiction                                2          Australia

   Gross amount                                3                                   1 2 5 0 0 0

   Tax credit                                  4                                       1 2 5 0 0


   Income type                                 1          Foreign employment/Service

   Jurisdiction                                2          Australia

   Gross amount                                3                                  3 0 0 0 0 0

   Tax credit                                  4                                       6 0 0 8 6


   Income type                                 1          Interest

   Jurisdiction                                2          Hong Kong

   Gross amount                                3                                       7 5 0 0 0

   Tax credit                                  4

  Income type                                  1
 Question   17 for Mark:
   Jurisdiction
  17
                                               2
         Did you receive any overseas income? Complete an Overseas income summary - IR1261 form and attach it to this return.

   GrossNo
         amount Go to Question 18              3 Yes 
                                                     �           Print the totals here. See the guide for further details.
         Total overseas tax paid                                                          Total overseas income

        17A
   Tax credit                                  4 7 2 5 8 6                                 17B                               5 0 0 0 0 0
         If your total overseas income includes a withdrawal and/or transfer
       from
   Income                               1 see the guide and tick Box 17C
            a foreign superannuation scheme,
          type                                                                             17C
         if applicable.
  Jurisdiction
  18                                      2
        Did you receive any partnership income? Exclude any income/losses shown at Questions 13, 14, 15, 17, 22, 23, 25, or 27 as appropriate.
         No          Go to Question 19             Yes           Print the totals here. See the guide for further details.
   GrossTotal
         amount
              partnership tax credits          3                                          Total active partnership income

        18A                                                                                18B
   Tax credit                                  4
  19     Did you receive any look-through company (LTC) income? Exclude any income/loss shown at Questions 13, 14, 15, 17, 22, 23, 25 and 27.
                                                                                                                                         RESET FORM
         No          Go to Question 20             Yes           Print the totals here. See the guide for further details.
         Total LTC tax credits
         19A
21                                                                   IR3G INDIVIDUAL RETURN GUIDE


 Note
 Portable NZ Super and/or portable veteran's pension paid while residing overseas are tax exempt and
 will not need to be included on your return.

 Note
 Dividends received from overseas companies that are treated as FIFs (except companies covered by
 the exclusions listed under foreign rights at Question 40) are not taxable separately. Generally, you
 would use the default FIF income calculation method (the fair dividend rate), which does not tax
 dividends separately.
 The foreign tax deducted from the dividend may be claimed as a credit against the tax payable on the
 calculated FIF income for that company.

Foreign superannuation withdrawals or transfers
If you've received a lump sum from a foreign superannuation scheme, have transferred your foreign
superannuation scheme into a New Zealand or Australian superannuation scheme, or you have
transferred a superannuation interest to another person you are liable for income tax unless you qualify
for an exemption. You need to calculate the amount of taxable income from the withdrawal or transfer
(refer below) and include this income in Box 17B, and tick Box 17C.
Lump sums received or transferred in the first 4 years of New Zealand tax residence are generally exempt
from tax, see ‘temporary tax exemption from foreign superannuation withdrawals’ on page 24.
Lump sums and transfers are taxed using 1 of 2 methods:
• schedule method (default method) - this means a certain portion of your foreign superannuation
   withdrawal will be income, based on the number of years you've been a New Zealand tax resident
   and contributions you've made in that time (certain conditions apply).
• formula method (alternative method) - can be used if your foreign superannuation scheme is a
   defined contribution scheme and meets certain requirements. It taxes the actual investment gains
   that have accrued to your scheme while you've been a New Zealand tax resident.
KiwiSaver withdrawal facility for tax liability on foreign superannuation withdrawals or
transfers
If you transfer a lump sum to a KiwiSaver scheme you may have income tax and student loan repayment
obligations. You can request a withdrawal of funds from your KiwiSaver account to pay these obligations.
Your KiwiSaver provider will deal with your application.
For more information about foreign superannuation withdrawals or transfers see our guide Overseas
pensions and annuity schemes - IR257 or go to ird.govt.nz/foreign-super
ird.govt.nz                                                                                               22


Foreign investment fund (FIF) income
If you held rights such as shares, units or an entitlement to benefit in any foreign company, unit trust,
superannuation scheme or life insurance policy, during the income year you may be required to calculate
FIF income or loss. Generally, you'll use the fair dividend rate (FDR) or comparative value (CV) method to
calculate FIF income.
The main exclusions are:
• investments in certain Australian resident companies listed on approved indices on the Australian
   stock exchange, that maintain franking accounts (you can check this on our website)
• interest in certain Australian unit trusts
   – limited exemptions for interests in certain venture capital interests that move offshore (for
      10 income years from the income year in which the company migrates from New Zealand)
• a 10% or greater interest in a controlled foreign company (CFC).
The FIF rules generally no longer apply to interests in foreign superannuation schemes unless acquired
when the holder was a New Zealand tax resident or the interest is grandparented. For more information
see our guide Overseas pensions and annuity schemes - IR257.
There's also an exemption from the FIF rules where the total cost of all the investment for FIF purposes is
below NZ$50,000.

What to show in your return
After you've converted the amounts to New Zealand dollars, add up the available amounts of overseas
tax paid and print the total in Box 17A. Add up the gross amounts of overseas income (before tax was
deducted) and print the total in Box 17B.
Attach proof of any overseas tax paid to your income tax return.
If a branch equivalent tax account (BETA) was maintained, complete a Branch equivalent tax account
return - IR308 and attach it to your IR3 return.

Tax paid overseas
If you paid tax overseas on any foreign income derived, you may be able to claim it as a credit against
your New Zealand tax payable. The amount of credit you receive may be restricted by any double
taxation agreements and is the lesser of the actual amount of tax paid on the overseas income or the
amount of tax you would pay in New Zealand on the foreign income.
If you have received Foreign tax Credits (FTC) from a trust, the amount of FTC you can claim as a
beneficiary, cannot be greater than the notional NZ tax liability that the trust would have incurred had it
retained that income.
To claim an overseas tax credit you must supply proof of the tax deducted, for example an overseas tax
deduction certificate. If you need one, you'll have to request it from the overseas government agency
concerned. Attach a copy of the certificate to your return.
Also, if you receive a dividend that is not taxed separately under the FIF rules, you can offset most
overseas tax credit paid on the dividend against your tax payable.
For more information about foreign tax credits read A guide to foreign investment funds and the fair
dividend rate - IR461 pages 19 to 22.
23                                                                    IR3G INDIVIDUAL RETURN GUIDE


Claiming overseas tax paid on overseas dividends FIF income
You can claim the tax paid up to the amount of New Zealand income tax payable on the FIF income
associated with the attributing interest that has paid the dividend. If you used the FDR method you can
use the overseas tax paid to reduce the tax payable on the FDR income associated with that attributing
interest. Note that Australian franking credits and tax on dividends from the United Kingdom cannot be
claimed as overseas tax paid.

Where there is no FIF income or a FIF loss
Tax paid overseas can only be used to cover your liability for income tax payable on your FIF income.
If there is no New Zealand income tax payable on your FIF investment, no claim can be made for the
overseas tax paid on any dividends received from that FIF.
You cannot get a refund of overseas tax paid, or reduce tax payable on any other income.
For more information read A guide to foreign investment funds and the fair dividend rate - IR461.

Unused overseas tax credits
Generally, these are forfeited (lost).

Carrying forward any excess or unused overseas tax credits?
You can not carry forward unused overseas credits where you have used the FDR, CV, deemed rate of
return or cost methods to calculate FIF income or loss.

New Zealand tax credits (imputation or RWT) deducted from overseas
dividends
You can claim New Zealand tax credits on overseas dividends as follows:
• If the credits are RWT, they are used to offset tax payable with any excess refundable.
• If they're imputation credits, they are used to reduce tax payable. If your dividend exceeds your FIF
   income, the amount of imputation credit you can claim is calculated on the basis of your FIF income.
   If your FIF income exceeds your dividend, you can claim the entire imputation credit attached to the
   dividend.
•    Any excess imputation credit can not be carried forward to the next year or converted to a loss.
The full amount of these New Zealand tax credits can be entered in the return even where the FIF
income is reduced to zero or there is an FIF loss.
These credits will only be attached to Australian company or unit trust dividends.
If you've shown a tax credit and there is no income in the associated panel, you'll need to include a note
in your return setting out the details.

Temporary tax exemption from foreign income
If you are currently claiming the four-year temporary tax (transitional resident) exemption for certain
types of foreign-sourced income, you do not need to declare this income in Box 17B, unless it is foreign
employment or services income. When your tax exemption expires, you must include all your worldwide
income when you complete your income tax return.
Go to ird.govt.nz/tte for further information about the temporary tax exemption qualifying criteria and
types of exempt foreign-sourced income.
ird.govt.nz                                                                                               24


Temporary tax exemption from foreign superannuation withdrawals
This four-year exemption period is similar to the temporary tax exemption from foreign income and
applies to foreign superannuation withdrawals during the period. The exemption does not require you to
be non-resident for a minimum period.
This exemption applies if you:
• first acquired your interest in a foreign superannuation scheme while a non-resident for New Zealand
     tax purposes, and
• have not previously had this exemption.
Foreign superannuation withdrawals during the four-year exemption period do not need to be declared
as income in Box 17B.
Go to ird.govt.nz/income-tax/income-tax-for-individuals/types-of-individual-income/foreign-
superannuation for further information about the foreign superannuation temporary exemption or read
our guide Overseas pensions and annuity schemes - IR257.

Australian dividends from non-FIF companies
If you received Australian dividends, your dividend statements may show all or some of the following:
• the franked/unfranked amount
• Australian withholding tax
• imputed credit or franking credits, or
• New Zealand imputation credits.
Add up the amounts of Australian withholding tax deducted and print the total in Box 17A. Dividends
paid by Australian companies may have a New Zealand imputation credit.
To calculate the gross dividend, add together the franked and unfranked amounts, along with the
New Zealand imputation credits and print the total in Box 17B. Do not include any Australian imputed
or franking credits. Claim New Zealand imputation credits in Box 14.

Overseas pensions
If you received an overseas social security pension, convert the amount into New Zealand dollars. Print
the total in Box 17B.
You may also have received other types of overseas pensions, such as foreign private annuities or foreign
investment funds. For more information, read the note about foreign rights disclosure on page 53. Under
most of the tax treaties New Zealand has with other jurisdictions, you cannot claim a tax credit for tax
deducted overseas on pensions. If you paid tax on the pension overseas, generally you need to claim a
refund or tax credit from the overseas tax authority, not from Inland Revenue in New Zealand.
For more information, read our guides Overseas pensions and annuity schemes - IR257 and Overseas
social security pensions - IR258 or go to ird.govt.nz/dta

Specific dividends
If you received dividends that are treated as interest or that are from an overseas company through an
agent or trustee, who has deducted RWT in New Zealand, show the tax credits and overseas income in
Boxes 17A and 17B. Show New Zealand RWT deducted in Box 14A.
Attach a copy of the dividend statement to your return.
25                                                                    IR3G INDIVIDUAL RETURN GUIDE


 Note
 If you've shown a tax credit and there is no income in the associated panel, you'll need to include a
 note in your return setting out the details.

Investments in Portfolio Investment Entities (PIEs)
All attributed portfolio investment entity (PIE) income received by New Zealand resident individuals will
be checked to make sure it has been taxed at the right prescribed investor rate (PIR) for the full year.
Because PIE income is taxed differently to your other taxable income, your annual income tax calculation
now includes a separate PIE calculation. This is to work out whether you have paid the right amount
of tax on your PIE income based on the PIR you should have used. To find out what PIR you should be
using, go to ird.govt.nz/pir
If you did not use the correct PIR for the full year and the outcome of the calculation is;
• you did not pay enough tax, the difference is added to your tax on taxable income in Box 36.
• you paid too much tax, the difference is used to reduce your tax to pay and any remaining credit
     refunded as part of calculating residual income tax at Box 36A.
Page 43 has a worksheet to help you with the PIE calculation.

Working for Families (WfF) or student loan
There are 2 types of PIE income - locked-in and non-locked-in.
Locked-in funds are a superannuation fund or retirement savings scheme, such as KiwiSaver, that limits
your access to the funds until you reach a specified retirement age. As these funds are not available for
your daily living they are not included as income for both WfF and student loan purposes.
If you can access your funds at any time, the PIE income must be included for both WfF and student loan
purposes. To do this, you’ll need to complete the Adjust your income - IR215 form and attach it to your
Individual tax return - IR3.
For more information go to ird.govt.nz/situations

Income from overseas residential rental property
Income and deductions from overseas residential rental property that is subject to the residential
property deduction rules in subpart EL of the Income Tax Act 2007 are recorded in Question 22.
However, the amount of tax paid on the overseas rental income is recorded in Question 17.
To ensure quick processing of your income tax return, please include a note outlining the breakdown of
the overseas rental income and deductions, and the amount of tax paid.
ird.govt.nz                                                                                            26


Question 18 Partnership income
Show your share of income from the partnership's trade or business from 1 April 2025 to 31 March 2026
in Box 18B, unless it includes:
• interest and any RWT - show this at Question 13 and tick 13C
• dividends and any credits - show this at Question 14 and tick 14C
• overseas income and overseas tax paid - show this at Question 17
• income and expenses from residential property including rental and bright-line income - show these
    at Question 22
• other rental income - show this at Question 23
• government subsidies - show this at Question 26, or
• other income and, if your share of this income:
    – is received in recognition of your capital investment in the partnership and you did not take any
       active part in the day-to-day operation or management of the business (for example you were a
       sleeping partner), or
    – is generated from other investment activity (for example sale of shares), show this at Question 27.
Partnership income earned as a result of active involvement is liable for ACC levies, which will be
invoiced by ACC.

 Note
 Generally, where the partnership has a different balance date, you may choose to include your
 share of the partnership income in the income year where the partnership balance date falls, or to
 apportion it to the income year(s) it was earned in.
 You must use the same method every year until either the partnership changes their balance date, or
 you leave the partnership.

Losses from limited partnerships
If you are claiming a loss from a limited partnership and you need help working out the amount you can
claim, go to ird.govt.nz/partnerships

Expenses
You may be able to claim expenses against your share of the partnership income that was not claimed
in the partnership's IR7 return, for example interest on capital borrowed to purchase a share in the
partnership. Claim these expenses at Question 29.
27                                                                    IR3G INDIVIDUAL RETURN GUIDE


Question 19 Look-through company (LTC) income
If you received any tax credits and/or income from an LTC write the details at Question 19.
Do not include:
• interest and any RWT - show this at Question 13 and tick 13C
• dividends and any credits - show this at Question 14 and tick 14C
• Māori authority distributions and credits - show these at Question 15
• any overseas income - show this at Question 17, along with qualifying tax credits attached
• income and expenses from residential property including rental and bright-line income - show these
     at Question 22
• other rental income - show this at Question 23, or
• government subsidies - show this at Question 26.

 Note
 The LTC will normally supply information about non-allowable deductions and any other information
 required to complete your return.
The loss limitation rule limits the amount of deductions an LTC owner (shareholder) can claim if the
amount exceeds the ‘owner's basis’ (equity) in the LTC.
The loss limitation rule only applies to an LTC which is in a partnership or joint venture which includes
another LTC.
For most LTC owners, you can now claim the full amount of your prior years' non-allowable deductions
brought forward this year. This will not apply if the loss limitation rule continues to apply to limit the
amount claimable.

 Example
 Daniel is an owner of an LTC which is not in a partnership or joint venture that includes another LTC.
 Daniel has a net loss of $7,000.00 from the LTC.
 Daniel also has prior years' non-allowable deductions brought forward of $5,000.00.
 Daniel has no tax credits from the LTC for the year.
 Daniel's tax return should show these amounts in the following boxes:
 • 19A: $0.00
 • 19B: $7,000.00-
 • 19C: $0.00
 • 19D: $5,000.00
 • 19E: $12,000.00-

What to show in your return
Add up all other tax credits received from the LTC and print the total in Box 19A.
Add up all LTC income, deduct expenses not already included elsewhere and print in Box 19B. If a loss,
put a minus sign in the last box.
ird.govt.nz                                                                                              28


Add up all non-allowable deductions this year and print in Box 19C.
There should not be non-allowable deductions this year unless the loss limitation rule applies.
Add up all prior year non-allowable deductions claimed this year and print in Box 19D.
You'll be able to claim the full amount of non-allowable deductions brought forward from last year if the
loss limitation rule no longer applies.
If you have an amount in Box 19C, add this to Box 19B and put the total in Box 19E.
If you have an amount in Box 19D, subtract this from Box 19B and put the total in Box 19E.
If you do not have any amounts in Box 19C or Box 19D, copy the amount from Box 19B to 19E.
Box 19E is your adjusted LTC income.
You can find more information about LTCs in our guide Look-through companies - IR879.

Question 20 Shareholder-employee salary
If, as a shareholder-employee, you received a salary between 1 April 2025 and 31 March 2026 with PAYE
deducted, include the amounts at Question 11A.
If a wage subsidy was received and fully applied to these wages, the wage subsidy amount does not also
need to be included at Q26.
If the wage subsidy was not fully applied to these wages, the excess wage subsidy (not applied to the
salary with tax deducted at source) must be included at Q27.
If, as a shareholder-employee, your shareholder-employee's salary or director's fees had no PAYE
deducted, include the amount in Box 20. If a wage subsidy was received include that separately at Q26.
If you did not receive a shareholder-employee salary but may in the future, tick Box 20A.
If you are not a shareholder employee and you received director's fees with no tax deducted, show the
income at Question 27. If a wage subsidy was received by the business for your role as director which did
not have tax deducted include that separately at Q26.
Over-payments of AIM provisional tax that relate to shareholder employee salary accruals are allowed to
be used to meet the shareholder's tax liability on that salary at the end of the income year. Include the
amount of any AIM tax credits transferred to you at Box 20B.
The company that paid your salary or fees will be able to tell you exactly how much to show in your return.

Box 20C Qualifying for In-work tax credit (IWTC)
In-work tax credit (IWTC) is a payment for families who are normally in paid work.
You can not receive in-work tax credit if you receive an income-tested benefit or student allowance.
You’ll keep receiving the in-work tax credit payments for up to 2 weeks during an unpaid break from
work. For example, changing jobs, leaving employment, or unpaid time such as school holidays.
If you are already registered for WfF, and now meet the requirements for IWTC you'll need to tick
Box 20C of your IR3.
If you have not already registered for WfF and you qualify, go to our website ird.govt.nz/working-for-
families and register online.
29                                                                       IR3G INDIVIDUAL RETURN GUIDE


ACC earners' levy
Shareholder-employee remuneration or director's fees without PAYE deducted are liable for ACC earners'
levy. The company should deduct earners' levy from your remuneration or director's fees when declared.
ACC will invoice the company for this.

Question 22 Income and expenses from residential property
This question applies to owners of residential property, including overseas property, that have:
•    income subject to the residential property deduction rules
•    net income (profit) from a bright-line sale
•    income in relation to a loan in a foreign currency
•    depreciation recovery income from disposed assets
•    net income from the taxable disposal of a residential property outside the residential property
     deduction rules because it is held on revenue account.

Residential property deduction rules
Most residential rental properties are subject to the residential property deduction rules (also known as
the ring-fencing rules). When they apply, your residential rental deductions generally cannot be more
than your residential property income.
If your deductions are more than your income, the difference must be carried forward to the next year
you earn income from your residential property, including income from properties held on revenue
account.
Any rental income or loss and net income or loss from a taxable disposal is fully excluded from the rules
if the property is:
• the main home
• subject to the mixed-use asset rules (for example, a holiday home rented out part-time and not used
     for at least 62 days in the income year, or 62 working days in the income year if it is usually only used
     on working days), or
• certain employee accommodation.
For these types of property, any rental income or loss is shown at Box 23 and net income or net loss from
a taxable disposal shown in Box 25B.
Any rental net loss and net loss from a taxable disposal is partially excluded from the rules if it is for:
• property that will always be taxed on sale, being revenue account property of a person in the
   business of building, developing or dealing in land, or
• other revenue account property the person has notified us they want the exclusion to apply to.
For these types of property any rental net loss is shown at Box 23 and taxable disposal net loss shown at
Box 25B.
The residential property deduction rules also apply if you borrowed money to acquire an interest in
certain entities that have significant rental property holdings - a residential land-rich entity - and you
have interest expenditure on the borrowed money.
Residential land-rich entity - a close company, partnership or look-through company that holds more
than 50% of its assets by value in residential land, directly or indirectly. These entities come under the
interposed entities rules as part of the residential property deduction rules.
ird.govt.nz                                                                                                30


For more information about the interposed entity rules, see page 60 of the Tax Information Bulletin
Vol 31 No.8 September 2019.
Read our Rental income - IR264 guide for more information on:
• when the rules apply
• how to calculate your income
• the amount of deductions you can claim this year, and
• the amount of any excess deductions that must be carried forward.

Completing your return
You will use question 22 to record residential income and deductions that are subject to the residential
property deduction rules.
Tick the method you have used to calculate your residential property income and deductions.
You can use 1 of the following methods:
• Portfolio basis - combine income and deductions for all rental properties in the portfolio.
• Individual, property-by-property basis - income and deductions of individual property calculated
   separately to other property. You need to maintain separate records for each property to choose this
   option.
• Combination of the individual basis and portfolio basis - choose to apply different methods to
   different property. Some properties are held in a portfolio and others are held on an individual basis.
If you are an owner of a look-through company (LTC) and have attributed residential income and/or
residential rental deductions, you need to use the same method the LTC uses (portfolio or individual
property basis) for the residential properties owned by the LTC. If you are a partner in a partnership and
have attributed residential income and/or residential rental deductions, you do not need to use the same
method the partnership uses.
For LTCs and partnerships, the residential property income and deductions calculations are made at
the owner or partner level as they may have other residential income and deductions that need to
be included. An LTC or partnership does not need to calculate its net residential income and excess
deductions. Instead, the LTC or partnership's residential income and deductions are attributed to the
owners or partners, who then calculate their net residential income and any excess deductions and enter
those amounts on their income tax return. An LTC must complete the IR7L form and a partnership must
complete the IR7P form to attribute amounts to the owners or partners.
You need to calculate and identify the amounts for Boxes 22A to 22I using the method you have chosen
for your rental properties. For the portfolio basis, the allowable deductions from all of the properties in
your portfolio can be offset against income you earn from all of the properties in the portfolio.
Calculate your rental income and deductions as usual, as shown at Boxes 4 and 13 on the Rental income
- IR3R form.
You can then enter these figures in the Residential property deductions worksheets - IR1226 to help
calculate the figures required to be entered in your return. You can print a copy off our website ird.govt.
nz/forms-guides
Write the total gross residential rental income from the portfolio and/or individual property in Box 22A.
Do not include rental income or losses from properties excluded from the residential property deduction
rules. Enter those amounts in Question 23 instead.
31                                                                      IR3G INDIVIDUAL RETURN GUIDE


Box 22B Net bright-line profit
The bright-line test needs to be considered when none of the other land taxing rules at Question 25
apply to the disposal of the property.
The bright-line test taxes profit made on the sale of residential property (including overseas property)
when it is sold within a certain period of time (bright-line period) and no exclusions or rollover relief
apply. Your intention or purpose for purchasing or selling the property is not relevant.
For property sold on or after 1 July 2024, the bright-line test looks at whether your bright-line end date
for the property is within 2 years of your bright-line start date.
For a standard purchase of property, the bright-line period starts from the date the property’s title is
transferred to you (generally the settlement date). For a standard sale, the bright-line period ends when
you enter into a binding sale and purchase agreement to sell the property. Different rules apply for other
types of purchase (for example, off the plans) and for other types of sale or disposal (for example, when
property is gifted).
For property sold before 1 July 2024, the sale will come under the bright-line test if the following apply:
•    You acquired the property on or after 29 March 2018
•    You are selling it within 5 years or before 1 July 2024 (whichever comes first).
Generally, the bright-line test does not apply to a sale of property that has been your main home when
your use meets certain criteria. Business premises and farmland are also excluded. Rollover relief is
available for certain types of ownership transfers.
If the sale of the property is taxable under the bright-line test, any interest previously denied under the
interest limitation rules is treated as if it were part of the cost of the property in the year of sale.
For more information about the bright-line test, go to:
•    ird.govt.nz/bright-line
•    Bright-line property tax - IR1229 for property sold from 1 July 2024
•    Bright-line property tax - IR1227 for property sold before 1 July 2024.
You can find our forms and guides at ird.govt.nz/forms-guides
You can also use the Property tax decision tool on our website to work out if you need to pay tax on the
sale of your property. Go to ird.govt.nz/bright-line

Completing your return
Income and losses for property taxable under the bright-line test are treated differently in your income
tax return.
Include your share of the net income (profit) from the sale of the property in Box 22B.
If you have a bright-line loss, do not include it in your income tax return. Instead keep your own record of
all your bright-line losses. The loss must be carried forward to a later income year where it can be used to
offset income from other taxable land sales, including bright-line.
Complete a Bright-line property sale information - IR833 form for each bright-line property sold or
disposed of and include it with your return. The form explains how to calculate the resulting profit or
loss.
ird.govt.nz                                                                                                   32


Complete the form even if the details have been included in a Financial statements summary - IR10 or
set of accounts, unless the income will be included in your return as part of your business income as a
property speculator, property dealer, developer or builder.

Box 22C Other residential income
Write the total other residential income in Box 22C. This includes the total from the following amounts:
•   income in relation to a loan denominated in a foreign currency from the portfolio and/or individual
    property
• all depreciation recovery income from assets disposed of from the portfolio and/or individual
    property
• net income from the taxable disposal of a residential property outside the residential property
    deduction rules because it is held on revenue account.
Write any net tax losses from disposals of rental properties that are excluded from the residential
property deduction rules in Box 25B.

Box 22D Total combined residential income
The amount in Box 22D is the total amount of Box 22A, Box 22B and Box 22C.

    Note
    If you are a partner in a partnership or owner of a look-through company and have been attributed
    residential income at Box 26G on the IR7P or IR7L, include your share of that in proportion to your
    share in the partnership or effective look-through interest in the LTC in the following relevant boxes:
    •   Gross residential rental income Box 22A
    •   Net bright-line profit (excluding losses) Box 22B
    •   Other residential income Box 22C.
    The amount in Box 22D will then include the total of your attributed residential income at Box 26G
    on the IR7P or IR7L.

Boxes 22E to 22I in your return
Write the total eligible deductions for the year for all ring-fenced residential rental properties in
Residential rental deductions Box 22E.
If you are a partner in a partnership or owner of a look-through company and have been attributed
residential rental deductions shown at Box 26M on the IR7P or IR7L, include that here at Box 22E.
Do not include purchase costs, capital improvements or costs incurred when disposing of the property
here. They are included when calculating the net income for taxable disposals. This is the total before
adjusting for excess deductions.
Write the total excess deductions brought forward from last year in Box 22F.
33                                                                         IR3G INDIVIDUAL RETURN GUIDE


Write the total residential rental deductions claimed this year in Box 22G. This amount cannot exceed
the lesser of the following:
•    Total combined residential income Box 22D
•    Residential rental deduction Box 22E plus Excess residential rental deductions brought forward Box
     22F.
The amount cannot exceed the above unless you have sold an individual property or the last property in
a residential portfolio and the sale was taxable.
The amount in Box 22H should equal Total combined residential income Box 22D minus Residential
rental deductions claimed this year Box 22G.
Any losses are counted as zero unless the loss is the result of either:
•     excess deductions released from either a taxable disposal of a property held on the individual basis,
      or a taxable disposal of all properties or the last property held in a portfolio, or
•     claimable interest paid on your investment in a residential land-rich entity. Refer to the Rental
      income - IR264 guide.
Write the amount of all excess deductions for the year to be carried forward to next year in Box 22I.

    Note 1
    If you sell or dispose of an individual property and the sale is not taxable, or you sell or dispose of
    the last property in a portfolio and at least 1 of the sales in the portfolio was not taxable, any excess
    deductions will transfer to another property or portfolio and carried forward to a future year in which
    you earn income from a residential rental property (including properties on revenue account).

    Note 2
    If you sell or dispose of an individual property and the sale is taxable, or you sell or dispose of the last
    rental property in a portfolio and the sale of all your rental properties in a portfolio were taxable, any
    remaining loss/excess deductions are released and can be offset against other income. However, this
    does not include any excess deductions transferred to the portfolio/property.

    Note 3
    If you want to claim that a property is held on revenue account where the sale may be taxable, you need
    to notify us of the details of the property. You will be stating the sale will be a taxable sale when the
    property is disposed of. You must be able to separately identify the deductions relating to the property.
For more information read the Rental income - IR264 guide.
Residential land-rich entities
If you have an investment in a land rich entity, include:
•     interest relating to the residential rental activity you can claim this year under the residential
      property deduction rules in Box 22G and any remaining amount carried forward in Box 22I
•     a note attached to your income tax return advising the above amounts relate to an investment in a
      land rich entity, to ensure quick processing of your return
•     the amount of interest paid that does not relate to the residential rental property in Box 23.
ird.govt.nz                                                                                                  34


Question 23 Income from other rental activities
Show income you received from other rental activities between 1 April 2025 and 31 March 2026 at Question 23.
Only include net residential rental income or losses not included at Question 22 and commercial rental
income in Box 23. This includes rents from:
• a bach or holiday home that comes within the mixed-use asset rules
• the main home
• rental properties held on revenue account, such as part of a business dealing in land or building
    residences, or
• a commercial property.
Prepare a summary of the details for each rental property. You can use either:
• the Rental income - IR3R form, which asks for all the information we need, or
• your own summary.
If you need an IR3R form, you can print a copy from ird.govt.nz/forms-guides
If you prepare your own summary, refer to the IR3R form or the Rental income - IR264 guide to find out
what to include.

What to show in your return
Add up the net rents (total rents after expenses) and write the total in Box 23. Attach the IR3R, or your
summary, to your income tax return.
Keep your receipts with your records in case we ask to see them later.

Question 24 Self-employed income
If you received self-employed income between 1 April 2025 and 31 March 2026, show your net income at
Question 24.
If you received the wage subsidy, show the total wage subsidy amount received at Question 26 (this
amount must be separated from your self-employed income).

Schedular payment income
Do not show any schedular payment income at Question 24. This income is declared at Question 12. If
you are an ACC client or caregiver and received ACC personal service rehabilitation payments, read the
information on page 56 before you complete Question 12.
If you received a wage subsidy from your employer without tax deducted refer to Question 12 and 26,
show this amount in Question 26.
You can claim expenses and deductions against many schedular payments at Question 12C - see page 14.

Attribution rules
The attribution rule may apply where an individual provides services to an associated person (company,
trust, partnership).
In particular, it can apply where the associated person sells those services on, principally to a third party.
To find out how to apply this rule, please read Interpretation statement 19/02 ‘Income tax – attribution
rule for income from personal services’.
35                                                                     IR3G INDIVIDUAL RETURN GUIDE


Prepare a summary of details
You can use any of the following:
• your financial records
• the Farming income - IR3F form for agricultural businesses
• the Business income - IR3B form for other businesses
• the Financial statement summary - IR10 form.
The Financial statement summary - IR10 is a short form of the financial statements of a business. Use
an IR10 and speed up processing of the return. We do not need a set of accounts if you use the IR10. You
still need to complete a set of financial accounts and keep them in case we ask for them later. For help
with completing the IR10, see our IR10 guide.
Keep your receipts with your records in case we ask to see them too.

Providing childcare services in a home
Based on the Education (Home-Based Care) Order 1992 and/or the Licensing Criteria for Home-
Based Education and Care Services 2008, Inland Revenue's Determination DET 09/02: Standard-Cost
Household Service for Childcare Providers sets out the types of expenditure generally incurred
(standard cost) by individuals providing childcare services in their home.
If you are a childcare provider who's registered for GST, this determination does not apply to you.
Individuals providing childcare services in their homes may use the standard costs (set out in the
determination) or their actual costs and income for calculating their tax. If your childcare activities began
part-way through the year, calculate your tax from that date using either the standard costs or actual
costs. See our Tax Information Bulletin (TIB) Vol 17, No 4 (May 2005) for details.
If you use the standard cost method and received the wage subsidy refer to ird.govt.nz/covid-19/
business-and-organisations for information on how to calculate this including the wage subsidy.
Show your childcare income at Question 24 if:
• the determination applies to you, and your childcare taxable income is greater than nil, after
   standard costs have been deducted, or
• you keep full records of your childcare income and actual expenses, and you make a taxable profit or
   loss after expenses have been deducted.
If you need help deciding whether you need to declare childcare income using standard costs, contact us.

 Note
 You can not offset any loss calculated using standard costs (see the determination) against other
 income in any income year.

Childcare services not under the Education (Home-Based Care) Order 1992
These childcare providers can not use the determination. They must keep full records of actual income
and expenses and are liable for tax on their total income after actual expenses are deducted for childcare
services provided.
At Question 24 show any childcare taxable income or loss after expenses have been deducted.

ACC levies
Income from self-employment is liable for ACC levies which ACC will invoice you for.
ird.govt.nz                                                                                                36


Question 25 Income from taxable sales or disposals of property
Include all income and tax losses from land sales or disposals of other property not included at Question 22.
Profits from land sales are taxable if you bought a property (including overseas property) for the purpose
of reselling it or are in the business of buying and selling land and/or buildings.
The profits may also be taxable if you:
• are a builder and improved a property before selling it
• developed or subdivided land and sold sections
• had a change of zoning on your property and sold it within ten years of buying it, or
• sold a mixed-use asset.
Write the total profit or loss from the sale or disposal of other property in Box 25B.
Net profit from the sale of a property taxable under the bright-line test is included in Box 22B. The only
exception is the sale of a mixed-use asset that is taxable under the bright-line test, include this in Box 25B
instead. Do not include any net loss from the sale of a property taxable under the bright-line test.
For more information on the land sale rules, go to ird.govt.nz/buying-selling or our guide Tax and your
property transactions - IR361. You can find our forms and guides at ird.govt.nz/forms-guides

Box 25A Residential land withholding tax (RLWT) credit
If you are an ‘offshore RLWT person’ and have sold or transferred residential property located in
New Zealand, RLWT may have been deducted from the sale price. You should have received a statement
on the completion of the sale process showing the amount of RLWT deducted. You can claim a credit
for any RLWT deducted. Show the amount of RLWT deducted, less any RLWT paid back to you and/or
transferred to outstanding amounts during the income year.
If there was more than 1 amount of RLWT deducted, show the combined amount, less any RLWT paid
back to you and/or transferred to outstanding amounts during the income year.
Attach a note showing the name of your withholder(s) to the return.

Question 26 Government subsidy
The government subsidy box is used to report the TOTAL Covid-19 wage subsidy, wage subsidy
extension, wage subsidy resurgence and wage subsidy March 2026 payments received by an individual
where tax was not deducted at source and passed on to Inland Revenue e.g. received by the employer
and passed on as salary/wages with normal PAYE etc deductions.
The resurgence support payment (RSP) is not subject to income tax and therefore does not need to be
included in this box as income. Where the RSP has been received you need to reduce your expenditure
claims to the extent of the total RSP’s you received.
If your employer received the wage subsidy on your behalf and continued to pay your salary/wages or
contractor payments, and these have been reported in the gross earnings or schedular payments fields,
you are not required to include the amounts in this box.
If you received any wage subsidy payment that has not been dealt with via payroll as noted above, for
example customers that received the wage subsidy payments due to loss of self-employed income,
shareholder salary or partnership/LTC income; you will need to report it in this box.
Full details, including various scenarios that apply to wage subsidy receipts and what amount to report
can be found at ird.govt.nz/covid-19/business-and-organisations
37                                                                       IR3G INDIVIDUAL RETURN GUIDE


Question 27 Other income
If you received any other income between 1 April 2025 and 31 March 2026, show it at Question 27.
This may include:
• the sale of non-FIF shares or other property
• financial arrangements
• cash jobs, payments made 'under the table', tips, bartering or income from an illegal enterprise
• any share of partnership income as a result of capital investment
• free or discounted shares received under an employee share scheme if your employer has not
     provided us with this information as per instructions in Question 11.
If you are not sure if your income is taxable, contact us.

Income from the sale of non-FIF shares or other property
The profits are taxable if you bought:
• and sold shares or other property as a business
• shares or other property for the purpose of resale, or
• shares or property to make a profit.
This does not apply to shares that are FIFs. Write the total profit in Box 27. Attach the details of your
income and expenses from these sales to your return.

Sale or disposal of assets
If you sold or disposed of a depreciated asset for more than its adjusted tax value, contact us or refer to our
Depreciation - IR260, General depreciation rates - IR265 or Historic depreciation rates - IR267 guides.

Losses from the sale of shares or other property
If you made a loss and can show that if you'd made a profit, it would have been taxable, you may be able
to claim the loss as a deduction.

Financial arrangements
If you are a party to a financial arrangement, you must account for income from those arrangements
on an accrual basis. Financial arrangements include government stock, futures contracts and deferred
property settlements, excluding short-term agreements for sale and purchase of property.
A cash-basis person does not need to use the accrual method to calculate income. From the 2025–26
income year, you qualify as a cash-basis person if:
• on every day in the income year the absolute value of all financial arrangements added together is
    $2,000,000 or less
• the absolute value of your income and expenditure in the income year under all financial
    arrangements is $200,000 or less, and
If you held the financial arrangement prior to the 2025-26 income year, different thresholds applied.
Note the ‘absolute value’ is the value of an amount whether it is positive or negative.
ird.govt.nz                                                                                                  38


Sale or maturity of financial arrangements
Whether or not the exemption from the spreading method applies, you must do a ‘wash-up’ calculation
in certain circumstances. For example:
• a financial arrangement matures, is sold, remitted or transferred
• there is an absolute assignment of the financial arrangement
• a party to a financial arrangement is released from making all remaining payments under the
     Insolvency Act 1967, the Companies Act 1993 or the laws of a country or territory other than
     New Zealand, or
• you cease to be a resident of New Zealand.
The calculation ensures that the total gains or losses from the financial arrangement are brought to
account. This applies in every case - you do not have to be in the business of buying or selling financial
arrangements, or have bought them for the purpose of resale, as you would with shares.
When calculating the income or expenditure on sale, use our Sale or disposal of financial arrangements
- IR3K form.

Income from cash jobs, tips, ‘under the table’ payments, bartering or an
illegal enterprise
If you received any other type of income that did not have tax deducted from it, show it in Box 27.
Attach the details of your income and any expenses to your return.

Share of partnership income as a result of capital investment
If your share of partnership income is received in recognition of your capital investment in the
partnership and you did not take any active part in the day-to-day operation or management of the
business (for example, you were a sleeping partner), show your share of partnership income in Box 27.

Question 29 Other expenses and deductions
If you paid any of these expenses, between 1 April 2025 and 31 March 2026, you can claim them in
Box 29.
• a fee to someone for completing your tax return
• commission on interest or dividend income (but not bank fees - they're a private expense)
• additional expenses incurred in earning partnership income, for example interest on capital
     borrowed to purchase a share in the partnership
• interest on money you borrowed to buy shares or to invest - as long as the investment will produce
     some taxable income
• premiums on loss of earnings insurance (income protection), provided the benefit from the
     insurance policy is taxable, or
• interest paid to Inland Revenue for late payment of tax, only if the interest is not already included as
     a deduction in your accounts
• Do not include expenses from self-employed income here - see Question 24 Self-employed income
     on page 34.
39                                                                   IR3G INDIVIDUAL RETURN GUIDE


ACC personal service rehabilitation payments
If you are an ACC client and received ACC personal service rehabilitation payments and have
retained some of these, you may claim the payments you've made to your caregiver as a deduction at
Question 12C. Read the information on page 56 before you complete Question 12C.

Schedular income expenses
If you incurred expenses while earning income that has had tax from schedular payments deducted,
you claim these at Question 12C, not here.

Other expenses
For other expenses, attach the details to your return. Include your name and IRD number.
You cannot claim expenses against income from:
• salary and/or wages
• election day services
• casual agricultural work, or
• commissions, if you are also paid a salary or retainer from the same employer.
You can still claim expenses for having your tax return completed for you and loss of earnings insurance
premiums from these income sources.

 Note
 If you are GST-registered you must deduct any GST included in any expenses. GST-registered people
 claim the GST portion of their expenses in their GST return, not the IR3.

ACC levies
ACC will take into account all expenses shown in Box 29 when calculating any ACC levies due.

Question 31 Net losses brought forward
You can find the amount of net loss you have to bring forward on the loss carried forward letter we sent
you after your last year’s return acknowledgement or notice of assessment. Add up all net losses to be
brought forward and print the total in Box 31A. Print the amount you can claim this year in Box 31B.
ird.govt.nz                                                                                                         40


Your tax credits
Tax credits can reduce the tax you have to pay on your income.

Other tax credits
Donation tax credits are claimed separately on a Tax credit claim form - IR526 or you can submit a
receipt for donations in myIR. Go to ird.govt.nz/donations for more information.

Question 33 Independent earner tax credit (IETC)
You can calculate your IETC:
• by using the worksheets provided in this section, or
• by calling our self-service line - see page 62.

IETC
The IETC is a tax credit if your annual net income* is between $24,000 and $70,000.
Your annual net income is shown at Box 30 ‘Income after expenses’ in your return.
If you are eligible for IETC, but earn over $66,000, your annual entitlement to IETC abates (decreases) by
13 cents for every dollar earned above that amount.
You’ll be entitled to IETC for any months during the year:
• you were a New Zealand tax resident
• you or your partner were not entitled to Working for Families (or received an overseas equivalent)
     and you did not receive:
     – main benefit
     – NZ Super
     – a veteran's pension, or
     – an overseas equivalent of any of the above.
You are a tax resident if you lived in New Zealand for more than 183 days in the last 12 months or have
a permanent place of abode in New Zealand. For more information, read our guide New Zealand tax
residence - IR292.
To work out the months you are entitled to IETC, use the total number of whole months the criteria
applied to.
If you did not meet the above criteria for even 1 day of any month you will not be entitled to IETC at
all for that month, so do not include it in your calculation.
*	Net income means your total income from all sources, less any allowable deductions or current year losses (not
   including any losses brought forward).

Calculating your IETC
Enter the start and end dates when you had any overseas income that excludes you from being eligible
for IETC at Box 33B on your return.
If the overseas income continued past the end of the year enter the end date for the income as
31/03/2026.
41                                                                    IR3G INDIVIDUAL RETURN GUIDE


If you have more than 1 date range for the overseas excluded income, attach a note telling us of the date
ranges. You'll also need to include any dates you were not a New Zealand tax resident.
Tick the boxes below for each month (between 1 April 2025 and 31 March 2026) you were entitled to the
IETC for the full month.

     A        M        J        J       A        S        O       N       D        J        F       M



 Total number of months eligible                         Box A
                                                         Add the number from Box A to Box 33C of your
                                                         return.


     Use this worksheet to calculate your IETC entitlement

     Enter your income from Box 32, of your return, in Box A          A

     Calculate abatement
     If your income in Box A is more than $66,000 continue to Box B, otherwise enter $520 in Box D and
     continue to Box E

     Subtract $66,000 from Box A and enter it in Box B                B


     Multiply Box B by 0.13 and enter the amount in Box C             C


     Subtract Box C from $520 and put the amount in Box D             D

     Enter your number of months eligible for IETC (from Box A
                                                                      E
     near the top of the page)

     Multiply Box D by Box E and enter the amount in Box F            F


     Divide Box F by 12 and enter the amount in Box G                 G

                                                                          This is your IETC. Copy it to
                                                                          Box 33 of your return.
ird.govt.nz                                                                                                 42


Question 34 Excess imputation credits brought forward
If you had excess imputation credits in your previous year’s tax return, they are not refundable and must
be brought forward and claimed against this year's tax payable.

Where to find your excess imputation credits to bring forward
You can find the amount on the excess imputation credits carried forward letter we sent you after your
previous year’s return acknowledgement or notice of assessment.
If you have excess imputation credits to bring forward but did not receive confirmation of the amount,
you can get a copy of your letter in myIR or contact us.

What to show in your return
Enter the excess imputation credits brought forward to this year in Box 34 of your return. Also enter this
amount in Box 8 of your tax calculation on page 47 in this guide.

Question 35 Portfolio Investment Entity calculation
To find out what PIR you should have used, go to ird.govt.nz/pir
You will need your Summary of income, access to your details in myIR, or the investor statements from
your PIEs. These will show your taxable PIE income or loss, PIE tax paid or refunded to the PIE and the PIR
they used.

If you closed your PIE investment during the year
If you exit certain PIEs (Quarterly PIE) part-way through a quarter, they may calculate your PIE tax
liability at the end of that quarter using a zero rate of tax, or they may voluntarily pay the tax using your
PIR. Your investor statement will show the income you earned up to the end of the quarter and any tax
credits. Any remaining balance you have at the end of the quarter is also treated as a tax credit.

PIE losses and tax credits
If you have any credits, include them in Box 2 in the worksheet below. If you had a PIE loss the PIE would
have claimed a tax refund for you. Show the tax refund amount as a negative in box 2. If you have both
tax credits and negative amounts, reduce the negative by the amount of any additional tax credits.

PIE worksheet
Copy the Total PIE deductions and Total PIE Income/Loss from your Summary of Income, details in myIR
or your investor statements to boxes 35A and 35B of your return. Then copy box 35A to Box 2 and 35B to
Box 1 in the worksheet below.
43                                                                    IR3G INDIVIDUAL RETURN GUIDE


 Use this worksheet to complete your PIE calculation
                                                                                   Show a PIE loss as a
 Total PIE income/loss             1                                               negative

                                                                                   Show PIE tax refunded as
 Total PIE deductions              2                                               a negative

                                                                             To confirm your corrrect PIR go
 Correct PIR                       3                     %                   to ird.govt.nz/pir

 Correct tax on PIE income
                                   4
 Multiply Box 1 by Box 3

 PIE calculation outcome
                                   5
 Deduct Box 2 from Box 4

Copy the amount in Box 5 to Box 35C of your return, if you are entitled to a refund of PIE tax enter a
minus sign at the end of the cents box.
If your PIE calculation outcome in Box 5 is a debit, add it to your tax on taxable income in the worksheet
in the next section.


Calculating your tax
Tax on taxable income
You can calculate your tax:
• on our website ird.govt.nz/tools-calculators
• by using the worksheet below, or
• by calling us on our 0800 self-service line - see page 62.
Find your taxable income in the following table, use the values (A, B and C) to complete the worksheet
below.

     If your taxable income is:     Income threshold              Tax rate                      Tax
                                          (A)                       (B)
                                                                                                (C)

         $0.00 to $15,600                   $0                     .1050                        $0

        $15,601 to $53,000                $15,600                  .1750                    $1,638.00

        $53,501 to $78,100                $53,500                   .30                     $8,270.50

        $78,101 to $180,000               $78,101                   .33                     $15,650.50

        $180,001 and over                $180,000                   .39                     $49,277.50
ird.govt.nz                                                                          44


 Use this worksheet to calculate your tax on taxable income
 Copy your taxable income from Box 32 of your return to           1
 box 1.
 Copy your Income threshold (A) from the table above to           2
 Box 2.
 Subtract Box 2 from Box 1. Print the answer in Box 3.            3
 Copy your Threshold tax rate (B) from the table above to         4
 Box 4.
 Multiply Box 3 by Box 4. Print the answer in Box 5.              5

 Copy your Threshold tax (C) from the table above to Box 6.       6

 Add Box 5 and Box 6. Enter the answer in Box 7.                  7
 If Box 36C of your return is a positive amount of tax to pay     8
 enter that in Box 8, if not enter 0.
 Add Box 7 and Box 8. Print the answer in Box 9.                  9
 This is the tax on your taxable income. Copy it to Box 2 in the table below.

Question 36 Tax calculation
 Use this worksheet to work out the amount of tax to pay or amount to be refunded.
 Copy your taxable income from Box 32 of your return to
 Box 1. If the amount is a loss, print ‘0.00’.
                                                                  1             00
 Work out the tax on taxable income from the worksheet
 above. Print your answer in Box 2.                               2
 Copy this amount to Box 36 of your tax return.
 Copy your tax credit from Box 33 of your return to Box 3.        3
 Subtract Box 3 from Box 2. Print your answer in Box 4.
 If Box 3 is larger than Box 2 print ‘0.00’.
                                                                  4
 Copy your overseas tax paid, if any, from Box 17A of your
 return to Box 5.
                                                                  5
 Subtract Box 5 from Box 4. Print your answer in Box 6.
 If Box 5 is larger than Box 4 print ‘0.00’, then read Tax paid   6
 overseas on page 22 in this guide.
 Copy your imputation credits, if any, from Box 14 of your
 return to Box 7.
                                                                  7
 Copy your excess imputation credits brought forward from
 Box 34 of your return to Box 8.
                                                                  8
45                                                                    IR3G INDIVIDUAL RETURN GUIDE


 Add up your total imputation credits from Boxes 7 and 8,
 and print the total in Box 9.
                                                                      9
 Subtract Box 9 from Box 6. Print the answer in Box 10.
 If Box 9 is larger than Box 6 print ‘0.00’, then read excess         10
 imputation credits carried forward on page 42.

 If Box 35C is an amount of overpaid PIE tax print in Box 11.         11
 Copy your tax credit subtotal from Box 21A of your return
 to Box 12.
                                                                      12

 Add Box 11 and Box 12. Print the answer in Box 13.                   13

 Subtract Box 13 from Box 10. Print your answer in Box 14.            14
 If Box 13 is larger than Box 10, the result is a credit. If Box 10            Credit       Debit
                                                                    (Tick one)
 is larger than Box 13, the result is a debit.
 Box 14 is your residual income tax. Copy this amount to Box 36A of your tax return.

 Print any 2026 provisional tax paid in Box 15.                       15
 If Box 14 is a credit, add Box 15. Print the answer in Box 16.
 This is your refund.
                                                                   16
 If Box 14 is a debit, subtract Box 15 from Box 14. Print your
 answer in Box 16. This is your tax to pay. (If Box 15 is larger (Tick one)     Refund      Tax to pay
 than Box 14 the difference is your refund.)
 Please copy the answer in Box 16 above to Box 36B of your tax return.

Excess imputation credits carried forward
Imputation credits are treated differently from RWT. If you received dividends from a New Zealand
company that gave you imputation credits or an Australian company that gave you New Zealand
imputation credits, you may have excess imputation credits to carry forward. This will only happen if
your total imputation credits (including any excess imputation credits brought forward from last year)
are greater than your total tax payable.
Use the worksheet below to work out the excess imputation credits that must be carried forward to next
year’s tax return. We'll send you a letter confirming the amount.

     Worksheet
     Copy your total imputation credits from Box 9 in the         1
     worksheet above to Box 1.

     Copy your total tax payable from Box 6                       2
     of your tax calculation on page 44 in this guide to Box 2.

     Subtract Box 2 from Box 1. Print your answer in Box 3.       3
ird.govt.nz                                                                                              46


  This is your excess imputation credits amount to carry forward.


Student loan
We'll work out how much of your student loan you need to repay, based on your income. If you have
an end-of-year repayment obligation we'll send you a notice showing how much is due. If you want to
calculate the amount yourself, either use the worksheet provided here or go to ird.govt.nz/calculators
and use our student loan repayment calculator.

Interest-free student loan
If you've lived in New Zealand for 6 months (183 days) or more, your student loan is interest-free.
Even if you have not been in New Zealand for 6 months, you may qualify for an interest-free student loan
if you meet the criteria for an exemption.
Go to our website ird.govt.nz/sl-interest-free for more details.

End of year repayment obligation
Repayment deductions from salary or wages are generally considered your final obligation on that
income and do not form part of your end-of-year repayment obligation.
Income from casual agricultural work and election day work does not have student loan deductions.
This income is excluded as salary and wage income and becomes part of adjusted net income.
If you have a loss from an investment or business activity, any income or deductions are excluded in
calculating your adjusted net income. If you have separate business or investment activities which are
normally carried out in association with each other, you can offset a loss from 1 business or investment
activity against other like income. For example, Rory has an overall loss from his landscaping business of
$7,500. He has also made a profit from his lawnmowing service of $50,000. The activities are carried out
in association with each other, so Rory can claim the $7,500 loss against the $50,000 profit.
Income adjustments are now required to be part of your adjusted net income. For a full list of the
adjustments required go to ird.govt.nz/adjust-income
You'll only have an end-of-year repayment obligation if you:
• have adjusted net income of $500 or more with a total income (including salary or wages) of $24,128
    (annual repayment threshold plus $500) or more, or
• had an interim assessment for the year.

 Note
 Adjusted net income is your annual gross income, excluding salary or wages and less annual total
 deductions you may claim. If you have a loss from an investment or business activity, neither the
 income or the deductions from that activity are included in calculating your adjusted net income. If
 you have separate business or investment activities which are normally carried out in association with
 each other, a loss from 1 business or investment activity can be offset against other like income.
Annual total deductions are the expenses and deductions you can claim for the tax year.

 Note
47                                                                     IR3G INDIVIDUAL RETURN GUIDE


 If you are required to complete an Adjust your income - IR215 form, you cannot use this worksheet
 to calculate your repayment obligation. Once we have received your IR3 and your IR215 we will send
 your end-of-year repayment obligation.


 Use this worksheet to calculate your 2026 repayment.

 Annual repayment threshold.                                           1          24,128 00
 Copy any gross salary or wage income (excluding casual
 agricultural or election day income) from Box 11B of your             2
 return to Box 2.

 If Box 2 is more than Box 1 print $0.00 in Box 3, otherwise
 subtract Box 2 from Box 1 and print the result in Box 3.
                                                                3
 This is your unused repayment threshold you can use against your other income.

 Enter your income after expenses from Box 30 of your return
 (excluding any losses), less any salary and wage income from          4
 Box 2 in Box 4.
 Subtract Box 3 from Box 4. If the result is less than $500.00
 print $0.00 in Box 5. Otherwise, print the result in Box 5 (this      5
 is your total liable income).
 Multiply the amount in Box 5 by 0.12 (12%).                           6
 This is your end-of-year payment obligation for the 2026 tax year.

 Print any 2026 voluntary repayments made to Inland
 Revenue in Box 6A.
                                                                      6A
 Print any 2026 interim payments made to Inland Revenue in
 Box 6B.
                                                                      6B

 Add Boxes 6A and 6B together and print the result in Box 7.           7

 Subtract Box 7 from Box 6 and print your answer in Box 8.             8
 If Box 7 is less than Box 6, the difference is your end-of-year
 loan repayment.                                                                  Loan repayment
                                                                     (Tick one)
 If Box 7 is larger than Box 6, the difference is your end-of-year                Overpayment
 overpayment.

Question 37 Early payment discount
An early payment discount is available for people who:
• are either self-employed or a partner in a partnership
• are new in business
• derive income mainly from the business
ird.govt.nz                                                                                              48


•     have no obligation to pay provisional tax in their current tax year
•     made payments within the corresponding income year up to their balance date, for example a
      standard balance date taxpayer, who has made a payment or payments on or before 31 March 2026
      as income tax for the period 1 April 2025 to 31 March 2026
•     elect by 31 March of the following year, for example a taxpayer electing for the year ending 31 March
      2026, must elect on or before 31 March 2027.
For more information about early payment discount, work through the flow chart on the following page
or go to ird.govt.nz/early-payment-discount

Do you qualify for an early payment discount?
    Terms we use
    Provisional tax - this is tax paid in instalments during the year, based on what you expect your
    income to be, or what it was last year.
    Assessable income - income that is not exempt income or excluded income (for example a
    government grant to a business). Assessable income includes undeclared business income you may
    have earned (for example cash jobs).
    Year - as referred to in the diagram below, year means the standard tax year from 1 April to 31 March,
    unless you have an approved different balance date, in which case your income year will end then.
    If you have any questions about your entitlement to the discount, please contact us.
49                                                                         IR3G INDIVIDUAL RETURN GUIDE


 Are you self-employed or in a partnership                                           Have you made a
 and                                                     Yes                         voluntary payment
 you do not use a company or trust to run                       No                   of income tax for the
 your business                                                                       2026 year on or before
 and                                                                                 31 March 2026?
 most of your income is from your business -
 not interest, dividends, rents or benefits?
                                                                                           Yes
       No

                                                                                     Were you liable
 You do not qualify
                                                             Yes                     for provisional tax
                                                                                     during 1 April 2019 to
                                                                                     31 March 2026?
      Yes
                  Did you earn assessable income from a business in a                      No
                  four-year period since you last paid provisional tax?
      No          For example:
                   Year 0.          Year Year Year Year        Year 5.               Have you ever paid
                                                                               Yes   provisional tax?
 You qualify       You last paid    1    2    3    4           Eligible
 for an early      provisional                                 for early
                   tax              No assessable income       payment
 payment                            from a business during                                 No
 discount. To                                                  discount
                                    this period
 apply, tick
 the box at
 Question 37      Did you earn assessable income from a business in a          Yes   Have you ever claimed
 on your tax      four-year period since you last claimed the early payment          the early payment
 return.          discount? For example:                                             discount?

                      You claimed   Year Year Year Year        Year 5.
      No              an early      1    2    3    4           Eligible                    No
                      payment                                  for early
                      discount      No assessable income       payment
                                    from a business during     discount
      Yes                           this period                                      You qualify for an early
                                                                                     payment discount. To
                                                                                     apply, tick the box at
 You do not qualify                                                                  Question 37 on your
                                                                                     tax return.
ird.govt.nz                                                                                                  50


Question 38 Refunds and/or transfers
If you are entitled to a refund, you can:
• transfer all or part of it to your student loan
• transfer all or part of it to cover someone else's income tax or student loan
• transfer all or part of it to next year’s provisional tax, or
• have it direct credited to your nominated account shown at Question 8.
If you've made payments towards your 2027 provisional tax and, after completing this return, you have
less or no provisional tax to pay, the over payment can be included in the amount we refund or transfer.
Attach a note to your return to request this.



Direct credit
If you choose direct credit you get your refund faster and you can withdraw your money as soon as it is
credited because there's no clearance time.
We pay any refund over $1.00 direct into your New Zealand bank account or other deposit account, for
example a building society account as soon as we've processed your return. Make sure your correct bank
account number is printed at Question 8 on the front page of your return.

Transfers
If you'd like your refund transferred to another account or to arrears being paid off through an
instalment arrangement, you'll need to tell us the date you'd like it transferred.
The date you can choose depends on what tax has been overpaid and whose account you want the
credit transferred to.

Requesting transfers on your return
You can ask us to transfer a refund to another account by filling out the boxes on page 5 of your return.
If you ask for a transfer on your return, we will transfer your refund at 1 of the following dates:
Transfer to your own account or an account of someone associated to you, the later of:
• the day after your balance date (or 1 April if your balance date is before 31 March), or
• the due date in the destination account.
Transfer to an account of someone not associated to you:
• the day after your return was completed.
If you do not tell us the date you'd like your credit transferred, we will transfer it at a date we think gives
you the greatest advantage. If you'd like the credit transferred at a different date, you can contact us and
ask for the transfer date to be changed (including if we've transferred your credit to cover a debt).
51                                                                      IR3G INDIVIDUAL RETURN GUIDE


Associated taxpayers
The following are associated taxpayers for the purposes of transferring overpaid tax:
• a company you are a shareholder-employee in
• a partner in the same partnership
• a relative (for example child, parent)
• spouse or partner, or
• a trustee of a family trust you are a beneficiary of.

Transfers requiring a separate note attached to the return
Situations such as requesting a transfer at a future date, transfer to arrears being paid off by an instalment
arrangement and transfers at a different date will require you to attach a separate note to your return
advising the following specific details.
• The amount you want transferred.
• The account you want it transferred to, for example name, IRD number, tax type and period end
    date (and if it is another person, whether they're associated).
• The date you'd like the credit transferred.
• If it is to be transferred to debt covered by an instalment arrangement.
Special rules apply if the return period has had tax pooling funds transferred in.


Provisional tax
Question 39 Provisional tax
Provisional tax is generally payable because you earned income during the year that either:
• was not taxed, or
• was taxed at the wrong rate.
It is usually payable in 3 instalments during the year (28 August 2026, 15 January 2027, 7 May 2027),
unless:
• you have a non-standard balance date
• you pay GST on a 6-monthly basis, or
• you use the GST ratio method to calculate provisional tax.
Where an instalment date falls on a weekend or a public holiday, payments made or returns filed on the
next working day will be treated as being received on the instalment date,
If your residual income tax (RIT) (Box 36A of your return) is more than $5,000, you’ll need to pay
provisional tax for the following year.
For more information read our guides Provisional tax - IR289 or Penalties and interest - IR240.

Initial provisional tax liability
Special rules apply when interest may be charged for an initial provisional tax liability.
You will have an initial provisional tax liability if:
• you begin to derive income from a taxable activity during the tax year
ird.govt.nz                                                                                                    52


•     your RIT in any of the 4 preceding tax years did not exceed $5,000 ($2,500 for the 2019-20 and earlier
      years), and
•     your RIT for the current year is $60,000 or more.
If this applies to you, read our guide Provisional tax - IR289.
The date you cease employment determines when interest will be charged from.
You are not liable to pay provisional tax in the year you have an initial provisional tax liability. You may
make voluntary payments to reduce your interest liability.
Interest rules if you have an initial provisional tax liability
Special rules apply to when interest may be charged for an initial provisional tax liability. If this applies to
you, read our guide Provisional tax - IR289.

Payment options
You have 3 options for paying provisional tax - the standard option ‘S’, the estimation option ‘E’ or the
ratio option ‘R’.

Standard option
Under this option, your 2027 provisional tax is the same as your 2026 RIT (if it is more than $5,000) plus 5%.
Copy this amount to Box 39B of your return and print ‘S’ in Box 39A. Divide the amount by 3 to get the
amount you must pay for each instalment - record this on page 55. If you are filing your return after
28 August, your instalment amounts may be different.

    Note
    If you think your income for next year will be more than this year income, you can make voluntary
    payments over and above the amount you have to pay under the standard option.

    Use this worksheet to calculate your 2027 provisional tax using the standard option ‘S’

    Copy your RIT from Box 36A of your return to Box 1.               1

    Multiply Box 1 by 0.05 (5%). Print your answer in Box 2.          2

    Add Box 1 and Box 2. Print your answer in Box 3.
    Box 3 is your 2027 provisional tax.
                                                                      3                               00
    Copy this amount to Box 39B of your return and print ‘S’ in Box 39A.
    Divide the amount in Box 3 by 3 to get the amount you must pay for each instalment. Record this
    on page 55.
If you are completing your return after 28 August, your instalment amounts may be different.
53                                                                     IR3G INDIVIDUAL RETURN GUIDE


Estimation option
Anyone can estimate provisional tax. If you expect your RIT for next year to be lower than this year,
estimating will keep you from paying more than you have to.
If you choose to estimate, your estimate must be fair and reasonable at the time you make it and at each
instalment date.
You can be charged a penalty and/or interest if you do not take reasonable care when you estimate your
provisional tax.

     Use this worksheet to calculate your 2027 provisional tax using the estimation option ‘E’

     Enter your estimated 2027 taxable income in Box 1.            1

     Work out the tax on the amount in Box 1.
     Enter your answer in Box 2. You can find the rates on our     2
     website

     Enter your estimated 2027 credits, such as tax credits,       3
     PAYE deducted, in Box 3.

     Subtract Box 3 from Box 2. Print your answer in Box 4.        4
     Box 4 is your 2027 provisional tax.

     Copy this amount to Box 39B of your return and print ‘E’ in Box 39A.
     Divide the amount in Box 4 by 3 to get the amount you must pay for each instalment. Record this
     on page 55.

Ratio option
If you are GST-registered you may qualify to use the ratio option to calculate your provisional tax.
You must apply to use the ratio option, before the beginning of the income year you want to use it in.
If you've already elected to use the ratio option and want to continue using it, enter R at Box 40A.
Read our guide Provisional tax - IR289 for more information about the ratio option.

Question 40 Foreign rights disclosure
If you calculated controlled foreign company (CFC) or foreign investment fund (FIF) income at
Question 17, you may be required to complete an additional disclosure form for that investment. The
types of foreign investment that may not require an additional disclosure are investments in countries
New Zealand has a double tax agreement with as at 31 March 2026 and have used the comparative value
or fair dividend rate method.
Full details of the disclosure requirements are available in the April issue of our Tax Information Bulletin
(TIB).
If you need help making a disclosure please call 0800 377 774.
ird.govt.nz                                                                                                    54


What to show in your return
At Question 17 of your return include:
• any income and tax credits from a CFC or FIF, and
• any claim for BETA credits.
See page 19 to find out how to convert your overseas income and tax credits to New Zealand dollars.
For further information about CFCs and FIFs, go to ird.govt.nz

Question 41 Is your return for a part-year?
Read the situations listed in Question 41. If any apply to you, tick the ‘Yes’ option and then tick the
situation that applies and fill in the start and end dates of the return period.
If you were a tax resident for the full year, but only worked part of the year, please tick the ‘No’ option.
If you ticked ‘Yes’, this means that your return is not for a full year. We'll calculate your tax and
income-related tax credits and let you know what they are.
Where the Return is for a deceased person, from the 2025-26 income year, reportable income received up
to 28 days following a person’s death can either be included in this return or alternatively in an IR6 estate
income return.

Question 42 Notice of assessment and declaration
You must read the declaration and sign the return as being true and correct.

Self-assessment
You have to assess your liability as part of your return filing obligations. We may amend your assessment
if a correction is required.
If you dispute our assessment please go to ird.govt.nz/disputes for more information. The 4-month
period for you to issue a notice of proposed adjustment (NOPA) to your self-assessment will start on the
date Inland Revenue receives your return.

Paying your tax
If you have tax to pay, you must pay it by 7 February 2027. If you have an agent and a standard or late
balance date you may have until 7 April 2027 to pay. If you think this may apply to you, contact your
agent for more information. You can pay earlier if you want to.

How to make payments
Go to ird.govt.nz/pay to find out about paying by:
• direct debit
• credit or debit card, or
• internet banking.
55                                                                   IR3G INDIVIDUAL RETURN GUIDE


Late payment
We may charge you a late payment penalty if you miss a payment or it is late. We'll also charge you
interest if you do not make your tax payment by the due date.
If you can not pay your tax by the due date, please contact us. We'll look at your payment options, which
may include an instalment arrangement, depending on your circumstances.
Go to ird.govt.nz/penalties for more information.

Your record of payment
When you've worked out how much you have to pay, write the amounts on the schedule below. Keep it
as a record so you do not miss a payment.
The dates on the schedule apply for a 31 March balance date. If your balance date is different or you are
registered for GST on a six‑monthly filing frequency or if you have a tax agent, your payment dates may
be different too. If you are not sure, check with your tax agent or contact us.

 Payment schedule
 These dates may vary if you have a non-standard balance date, if you have a
 tax agent or if you are registered for GST on a 6-monthly filing frequency.

 Amount                                                     Date payable

 2026 income year

 Tax to pay (Box 36B of your return)
                                                            7 February 2027


 2027 income year

 Total provisional tax (Box 39B of your return)


 First instalment (one-third)
                                                            28 August 2026

 Second instalment (one-third)
                                                            15 January 2027

 Third instalment (one-third)
                                                            7 May 2027
ird.govt.nz                                                                                            56


Adjusting an income tax return already completed
If you want to amend or adjust an income tax return that has already been completed, please send us a
Notice of proposed adjustment - IR770 (NOPA) through the disputes resolution process. Do not send
us another return.

ACC personal services rehabilitation payments
If you've had a workplace injury your employer may manage these payments rather than ACC. If you or
your caregiver receive these payments, regardless of whether ACC or your employer makes them, you'll
need to read this information before you complete your return.
Any ACC personal service rehabilitation payments paid by ACC or your employer direct to the client or
caregiver, are schedular payments and will have tax deducted before the payments are made.
If you received these payments you may not be required to complete an IR3, let us know and we’ll
update our records.
For backdated lump sum income for ACC personal service rehabilitation payments see page 11.

Do I need to complete?
Are you a caregiver receiving payments from ACC, or a caregiver paid by a client?
If this is your only income, you are not required to complete an IR3 and can receive an automatic income
tax assessment instead. However, you may have another reason to complete an IR3 - see page 5 for more
information.
Are you a client who received these payments from ACC and then passed on those payments to your
caregiver?
You are not required to complete an IR3 if:
• you have no other income
• you have no other reason to complete - see page 5.
Note the above rules apply whether or not you've passed these payments on to your caregiver.
If you are not required to complete, please call us on 0800 377 774 and we'll update our records.
If you are a client or caregiver who is required to complete, read the information on the following
pages before you complete Questions 12 and 28.

Question 12 Schedular payments
If you are a caregiver paid directly by ACC
Use the income from schedular payments information on your Summary of Income (SOI) to help you
complete your IR3. If you have not received an SOI, call us on 0800 377 774 and we'll send you a copy.
If you have not given ACC your IRD number, include any payments that are not on your SOI in your IR3.
Enter the amount of tax deducted in Box 12A. Enter the total gross payments in Box 12B.
If you are a caregiver paid by the ACC client
Using the records you've kept on the amount of personal service rehabilitation payments you received
throughout the year, work out the gross payments to show in your return.
57                                                                     IR3G INDIVIDUAL RETURN GUIDE


Calculating your gross payments
     Worksheet 1. Calculating your gross payments that had 10.5% tax deducted
     Print in Box 1 the total amount of payments received that     1
     had 10.5% tax deducted.

     Divide Box 1 by 0.895.
                                                                   2
     Print the answer in Box 2. This is the gross payment.

If any of your payments had the 45% no-notification tax rate applied, you will need to complete the
following worksheet.

     Worksheet 2. Calculating your gross payments that had 45% tax deducted
     Print in Box 3 the total amount of payments received that     3
     had 45% tax deducted.

     Divide Box 3 by 0.55
                                                                   4
     Print the answer in Box 4. This is the gross payment.

Total gross payments amount for the year
     Worksheet 3. Calculating your total gross payment

     Add Boxes 2 and 4 together and print the answer in Box 5.     5
     This is the gross payment received for the year. Copy it to Box 12B of your return.

 Note
 If you are registered for GST, your gross schedular payment may include GST. Enter the GST-exclusive
 amount at Question 12B.
Calculating your tax deducted
     Worksheet 4. Calculating your available tax credit

     Add Boxes 1 and 3 together and print the answer in Box 6.     6

     Subtract Box 6 from Box 5 and print the answer in Box 7.      7


 Note
 If the payments you received did not have tax deducted from them or you received any other income
 that did not have tax deducted from it, print it in Box 24 of your return. Attach the details of your
 income to your return.
ird.govt.nz                                                                                             58


If you are an ACC client
If you've kept all payments and have not paid any of the money received from ACC to your caregiver(s),
use the amounts from schedular payments information on your SOI.
Enter the tax on schedular payments in Box 12A and enter the total gross payments in Box 12B.
If you have not received your SOI, you can get these details from myIR or call us on 0800 377 774 and we
will send you a copy.
If you have not provided ACC with your IRD number, include any payments that are not on your SOI in
your IR3.
If you've passed on all the income to your caregiver(s) you do not need to include these from your SOI at
Question 12. This is because these payments, when they're all passed to your caregiver(s) throughout the
year, are considered exempt income to you.
You will not need to put any amount in Boxes 12A or 12B.
If you've been reimbursed by ACC for amounts that you've paid to caregiver(s) before 1 April 2025 you
will not need to put any amount in Box 12B but you'll include the tax on schedular payments from your
SOI in Box 12A.
If you've kept some of the income, you'll include the total gross payments from your SOI at Box 12B but
claim any of these payments you've passed on to your caregiver(s) as a deduction at Question 12C. Read
Question 12C Expenses related to schedular payments below.
If you have not given ACC your IRD number, include any payments that are not on your SOI in your IR3.
Use worksheet 4 ‘Calculating your available tax credit’ on page 57 to determine your tax deductions. This
total will be added at Question 12A. You'll also need to complete worksheets 1 to 3 on page 59 before
you can calculate your available tax credit.

Question 12C Expenses related to schedular payments
If you've kept some of the income
To help determine your allowable deduction, you'll first need to determine your caregiver's gross payments.
Complete worksheets 1 to 3 and include the amount from Box 5 at Box 12C of your IR3 return.
Attach a copy of the payments you made to your caregiver(s) with your IR3.
59                                                                    IR3G INDIVIDUAL RETURN GUIDE


Calculating your deduction
     Worksheet 1. Calculating the gross payments you have passed to your caregiver that
     had 10.5% deducted
     Print in Box 1 the total amount you paid to your caregiver   1
     that had 10.5% tax deducted.

     Divide Box 1 by 0.895. Print the answer in Box 2.            2
     This is the gross payment you made to your caregiver.

If any of your payments had the 45% no-notification tax rate applied you'll need to complete the
following worksheet.

     Worksheet 2. Calculating the gross payments you have passed to your caregiver that
     had 45% tax deducted
     Print in Box 3 the total amount you paid to your caregiver   3
     that had 45% deducted.

     Divide Box 3 by 0.55. Print the answer in Box 4.             4
     This is the gross payment you made to your caregiver.

Your allowable deduction
     Worksheet 3. Calculating your allowable deduction

     Add Boxes 2 and 4 together and print the answer in Box 5.    5
     This is the allowable deduction. Include this amount in Box 12C of your return.

Attach a copy of the payments you made to your caregiver(s) with your IR3.
Use worksheet 4 on the next page to calculate the tax deducted, which you'll need to include at
Question 12A.
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Calculating your tax deducted
  Worksheet 4. Calculating your available tax credit

  Copy the amount from Box 5 on worksheet 3 to Box 1.           1

  Add Boxes 1 and 3 on page 59. Print the answer in Box 2.      2

  Subtract Box 2 from Box 1 on this worksheet and print
  the answer in Box 3. This is your caregiver's available tax   3
  credits.

  Copy your total tax deducted amount from your SOI to          4
  Box 4.

  Subtract Box 3 from Box 4. Print the answer in Box 5.         5
  This is the total tax deducted available to you. Copy it into Box 12A of your return.

More information
If you have any questions about your tax go to ird.govt.nz

Accident Compensation Act 2001 (ACC)
Under the Accident Compensation Act 2001, Inland Revenue is required to provide earnings information
from your IR 3 return to the Accident Compensation Corporation (ACC). ACC will begin invoicing
self-employed levies from September. ACC gets the information from IR3 returns as follows:
• Question 11A Gross earnings with PAYE deducted and earnings not liable for ACC earners' levy
• Question 12 Schedular payments
• Question 17 Overseas income (foreign employment income and foreign services income only)
• Question 18 Share of partnership income (‘active’ income) from the partnership's trade or business
• Question 19 Look-through company (LTC) active income
• Question 20 Shareholder-employee salary with no tax deducted
• Question 24 Self-employed income
• Question 27 Other income
• Question 29 Other expenses.
61                                                                    IR3G INDIVIDUAL RETURN GUIDE


Shareholder-employees
Other income
In addition to your shareholder's remuneration, you may also have received other income liable for
ACC levies, such as self-employed income. ACC will take your shareholder-employee remuneration into
account if invoicing for additional levies.

Maximum earnings from multiple companies
The maximum amount of ACC earners' levy deductions is $2,551.59. You may be due for a refund from
ACC if your shareholder-employee remuneration is from 2 or more companies and the combined total is
over $152,790. Find out more about the refund process at acc.co.nz/multiple-employer-adjustment

Mixed income
Mixed income earners are those who have a combination of employee (including shareholder-employee
remuneration without PAYE deducted) and self-employed earnings. If you are in this situation you have
to pay ACC levies on both sources of income, up to the maximum. ACC will invoice you for the amount
you'll have to pay.

Current year losses
If you were in full-time employment and have recorded a loss, or your earnings are below the minimum
earnings threshold, you are still liable for ACC levies. These will be calculated at the minimum level.

IR56 taxpayers
If you are a private domestic worker, you've already paid ACC earners' levy on your IR56 income as part of
your PAYE.
ACC will invoice you as an employer for other levies payable on your IR56 income. If you also receive
other income liable for ACC levies, we'll pass this information to ACC to invoice levies on this income.
ACC will make allowance for levies paid as an employer.

Further information
If you have any queries about ACC or levies payable, go to acc.co.nz/for-business or contact the
ACC Business Service Centre:
    Live chat business.acc.co.nz
    Phone      0800 222 776
    Email      business@acc.co.nz
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Services you may need
Need to speak with us?
Have your IRD number ready and call us on one of these numbers.
General tax, tax credits and refunds                                                          0800 775 247
Employer enquiries                                                                            0800 377 772
General business tax                                                                          0800 377 774
Overdue returns and payments                                                                  0800 227 771
We're open 8am to 6pm Monday to Friday. We record all calls.
Our self-service lines are open 7 days a week - except between 5am and 6am each day. They offer a range
of automated options, especially if you are enrolled with voice ID.
Find out more at ird.govt.nz/contact-us

0800 self-service number
Our 0800 self-service numbers are open 7 days a week - except between 5am and 6am each day. Make
sure you have your IRD number ready when you call.
For access to your account-specific information, you'll need to be enrolled with voice ID or have a PIN.
Order forms, guides and returns                                                             0800 257 773
All other services                                                                          0800 257 777
When you call, confirm what you want from the options given. If you need to talk with us, we'll re-direct
your call to someone who can help you.

If you have a complaint about our service
We're committed to providing you with a quality service. If there's a problem, we'd like to know about it
and have the chance to fix it.
If you disagree with how we've assessed your tax, you may need to follow a formal disputes process.
Find out more about making a complaint, and the disputes process, at ird.govt.nz/disputes

Privacy
Meeting your tax obligations means giving us accurate information so we can assess your tax and
entitlements under the Acts we administer. We may charge penalties if you do not.
We may also exchange information about you with:
• some government agencies
• another country, if we have an information supply agreement with them, and
• Statistics New Zealand (for statistical purposes only).
You can ask for the personal information we hold about you. We'll give the information to you and
correct any errors, unless we have a lawful reason not to. Find our full privacy policy at ird.govt.nz/
privacy
