Income Tax Act 2007

If you need more information about this Act, please contact the administering agency: Inland Revenue Department

Schedule 1 Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits

Schedule 1 heading: amended, on 1 April 2008, by section 554(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Part A Basic income tax rates

1 Taxable income: general

To the extent to which a person does not have a basic rate under clauses 2 to 10, the basic rate of income tax for the person on each dollar of the person’s taxable income is calculated using the formula—

tax under table 1 ÷ taxable income:

(a)

tax under table 1 means the total tax, calculated for each dollar in the person’s taxable income, using table 1:

(b)

taxable income means the number of dollars in the person’s taxable income.

Table 1
RowRange of dollar in taxable incomeTax rate
1$0 – $14,0000.105
2$14,001 – $48,0000.175
3$48,001 – $70,0000.300
4$70,001 – $180,0000.330
5$180,001 upwards0.390

How to use this table:

Find the range in the second column for each dollar in the person’s taxable income, and apply the relevant rate for the dollar in the third column.

Schedule 1 part A clause 1: amended (with effect on 1 April 2011 and applying for the 2011–12 and later income years), on 27 February 2014, by section 128(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).

Schedule 1 part A table 1: replaced, on 1 April 2021, by section 16 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

2 Taxable income: companies

To the extent to which a company does not have a basic rate under clauses 3 to 9, the basic rate of income tax for the company on each dollar of the company’s taxable income is 0.28.

Schedule 1 part A clause 2: amended (with effect on 1 April 2011), on 29 August 2011 (applying for the 2011–12 and later income years), by section 136(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part A clause 2: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

3 Taxable income: trustees

To the extent to which a trustee does not have a basic rate under clause 4, 5 or 6, the basic rate of income tax for the trustee on each dollar of the trustee’s taxable income is 0.33.

4 Taxable distribution: non-complying trust

The basic rate of income tax on each dollar of a taxable distribution made by a non-complying trust is 0.45.

5 Schedular taxable income: category A income

The basic rate of income tax for a trustee on each dollar of the trustee’s schedular taxable income that is for category A income is 0.28.

Schedule 1 part A clause 5: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

6 Taxable income: trustees of certain funds

To the extent to which a trustee does not have a basic rate under clause 4 or 5, the basic rate of income tax on each dollar of taxable income is 0.28 if the income is of a trustee of—

(a)

an approved unit trust to which the Income Tax Act (Exempt Unit Trusts) Order 1990 applies:

(b)

a widely-held GIF:

(c)

a widely-held superannuation fund.

Schedule 1 part A clause 6 heading: inserted, on 1 April 2008, by section 554(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 1 part A clause 6: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(3) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

7 Taxable income: Maori authorities

The basic rate of income tax for a Maori authority on each dollar of the Maori authority’s taxable income is 0.175.

Schedule 1 part A clause 7: amended, on 1 April 2011, by section 136(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

8 Schedular taxable income: schedular policyholder base income

The basic rate of income tax for a person on each dollar of the person’s schedular taxable income that is for schedular policyholder base income is 0.28.

Schedule 1 part A clause 8 heading: amended, on 1 July 2010, by section 577(1)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Schedule 1 part A clause 8: amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 97(4) of the Taxation (Budget Measures) Act 2010 (2010 No 27).

Schedule 1 part A clause 8: amended, on 1 July 2010, by section 577(1)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

9 Investment income from portfolio investment entities

The basic rate of income tax for a person who is an investor in a PIE on each dollar of income attributed by the PIE is the rate set out in schedule 6 as notified by the person to the PIE.

Schedule 1 part A clause 9: inserted (with effect on 1 April 2008), on 2 November 2012, by section 162(4) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Schedule 1 part A clause 9: repealed (with effect on 1 April 2011), on 2 November 2012, by section 162(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

Schedule 1 part A clause 9: inserted (with effect on 1 April 2011), on 1 April 2012, by section 136(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

10 Taxable income: New Zealand Superannuation Fund

The basic rate of income tax on each dollar of taxable income derived by the Crown through the New Zealand Superannuation Fund is the rate applying to companies set out in clause 2.

Schedule 1 part A clause 10: inserted (with effect on 1 April 2011), on 2 November 2012 (applying for the 2011–12 and later income years), by section 162(6) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).

11 Schedular taxable income: life insurance premiums derived by Lloyd’s of London

The basic rate of income tax for a person on each dollar of the person’s schedular taxable income that is income under section CR 3B (Lloyd’s of London: income from life insurance premiums) is 0.28.

Schedule 1 part A clause 11: inserted, on 29 March 2018 (with effect on 1 April 2017 and applying in relation to a life insurance premium that is derived on or after that date by Lloyd’s of London), by section 251(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

12 Taxable income: Venture Capital Fund

The basic rate of income tax on each dollar of taxable income derived by the Crown through the VCF is the rate applying to companies set out in clause 2.

Schedule 1 part A clause 12: inserted, on 14 December 2019, by section 17 of the New Zealand Superannuation and Retirement Income Amendment Act 2019 (2019 No 77).

Part B Low income amount

[Repealed]

Schedule 1 part B: repealed (with effect from 1 April 2008), on 29 May 2008, by section 50(1) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Part C Basic rates for attributed fringe benefits

Table 1

RowRange of dollar in all-inclusive payTax rate
1$0 – $12,5300.1173
2$12,531 – $40,5800.2121
3$40,581 – $55,9800.4286
4$55,981 – $129,6800.4925
5$129,681 upwards0.6393

How to use this table:

Find the range in the second column for each dollar in the person’s all-inclusive pay under section RD 51, and apply the relevant rate for the dollar in the third column.

Schedule 1 part C table 1: replaced, on 1 April 2021, by section 17 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

Part D Basic rates for withholding

Basic rates for ESCT

1 Amount of tax for section RD 67(a)

For the purposes of section RD 67(a), the amount of tax is determined by applying the relevant rate given by table 1 to each dollar of an employer’s superannuation contribution.

Table 1
RowESCT rate threshold amountTax rate
1$0 – $16,8000.105
2$16,801 – $57,6000.175
3$57,601 – $84,0000.300
4$84,001 – $216,0000.330
5$216,001 upwards0.390

How to use this table:

Find the range in the second column for the last dollar of the ESCT rate threshold amount, and apply the relevant rate in the third column.

Schedule 1 part D clause 1 heading: amended, on 1 April 2012, by section 136(4) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part D clause 1: amended, on 1 April 2012, by section 136(5) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

Schedule 1 part D clause 1: amended, on 1 April 2012, by section 14(b) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Schedule 1 part D table 1: replaced, on 1 April 2021, by section 18 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

2 Amount of tax for section RD 67(b)
[Repealed]

Schedule 1 part D clause 2: repealed, on 1 April 2012, by section 14(d) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).

Basic Rates for RWT

3 Interest: general

If clause 4 does not apply, the payment rate for a payment of resident passive income that consists of interest is set out in table 2.

Table 2
RowConditionsPayment rate
1The payer of the interest has not been supplied with the tax file number of a person who is paid the interest.0.450
2The payer of the interest—
(a) has been supplied with the tax file number of a person; and
(b)has not received a payment rate election from the recipient of the interest; and
(c)is not required to use a rate notified by the Commissioner under section 26B of the Tax Administration Act 1994.0.330
3The payer of the interest—
(a) has been supplied with the tax file number of a person who is paid the interest; and
(b)has received a payment rate election from the recipient of the interest choosing the 0.390 payment rate.0.390
4The payer of the interest—
(a) has been supplied with the tax file number of a person who is paid the interest; and
(b)has received a payment rate election from the recipient of the interest choosing the 0.330 payment rate.0.330
5The payer of the interest—
(a)has been supplied with the tax file number of a person who is paid the interest; and
(b)has received a payment rate election from the recipient of the interest choosing the 0.300 payment rate.0.300
6The payer of the interest—
(a)has been supplied with the tax file number of a person who is paid the interest; and
(b)has received a payment rate election from the recipient of the interest choosing the 0.175 payment rate.0.175
7The payer of the interest—
(a)has been supplied with the tax file number of a person, other than a trustee, who is paid the interest; and
(b) has received a payment rate election from the recipient of the interest choosing the 0.105 payment rate; and
(c)the recipient has a reasonable expectation at the time of the election that their income for the income year will be $14,000 or less.0.105
8The payer of the interest—
(a)has been supplied with the tax file number of a person who is paid the interest as a trustee of a testamentary trust to which section HC 37 applies; and
(b)has received a payment rate election from the recipient of the interest choosing the 0.105 payment rate.0.105

How to use this table:

Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.

Schedule 1 part D clause 3: amended (with effect on 1 April 2008), on 7 December 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Schedule 1 part D clause 3: amended (with effect from 1 April 2008), on 29 May 2008, by section 50(3) of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).

Schedule 1 part D table 2: replaced, on 1 October 2021, by section 19 of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

4 Interest: most companies

(1)

The payment rate for a payment of resident passive income that consists of interest is set out in table 3 if the recipient of the payment is a company that is not a Maori authority.

(2)

For the purposes of subclause (1), a company includes a company that is acting in the capacity of trustee for a portfolio investment entity.

Table 3
RowConditionsPayment rate
1The payer of the interest has been supplied with the tax file number of a person who is paid the interest, and neither of rows 2 and 3 apply.0.280
2The payer of the interest—
(a) has been supplied with the tax file number of a person who is paid the interest; and
(b)has received a payment rate election from the recipient of the interest choosing the 0.330 payment rate.0.330
3The payer of the interest—
(a) has been supplied with the tax file number of a person who is paid the interest; and
(b)has received a payment rate election from the recipient of the interest choosing the 0.390 payment rate.0.390
4The payer of the interest has not been supplied with the tax file number of a person who is paid the interest.0.450

How to use this table:

Find the applicable condition, in the second column, in order to find the relevant rate to apply, in the third column.

Schedule 1 part D clause 4: replaced, on 29 March 2018, by section 258 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

Schedule 1 part D table 3: replaced, on 1 October 2021, by section 20 of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

5 Dividends and replacement payments

The payment rate for a payment of resident passive income that consists of a dividend, or a replacement payment under a share-lending arrangement, is 0.33.

Schedule 1 part D clause 5: amended (with effect on 1 April 2008), on 7 December 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

6 Taxable Maori authority distributions

The payment rate for a payment of resident passive income that consists of a taxable Maori authority distribution is set out in table 4.

Table 4
RowConditionsPayment rate
1

The Maori authority makes a taxable Maori authority distribution and does not meet the condition for the 0.390 payment rate in row 2.

0.175
2

The Maori authority:

(a)

makes a taxable Maori authority distribution that is more than $200; and

(b)

does not have a record of the tax file number of the member to whom the distribution is made.

0.390

How to use this table:

Find the applicable condition, in the middle column, in order to find the relevant rate to apply, in the right column.

Schedule 1 part D clause 6: amended (with effect on 1 April 2008), on 7 December 2009, by section 122(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Schedule 1 part D table 4 row 1: amended, on 1 April 2021, by section 21(1) (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

Schedule 1 part D table 4 row 1: amended, on 1 April 2011, by section 136(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).

Schedule 1 part D table 4 row 2: amended, on 1 April 2021, by section 21(2) (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

Basic rates for RSCT

Schedule 1 part D heading: added, on 1 July 2008, by section 554(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

7 Retirement scheme contributions

The payment rate for an amount of a retirement scheme contribution made by a retirement scheme contributor for a person is set out in table 5.

Table 5
RowConditionsPayment rate
1

The person responsible for withholding RSCT—

(a)

has been notified under section 28C of the Tax Administration Act 1994 that 10.5 cents in the dollar is the person’s retirement scheme prescribed rate; and

(b)

has been supplied with the tax file number of the person.

0.105
2

The person is a non-resident and a distribution of no more than $200 is made to them by a retirement scheme contributor that is a Maori authority.

0.105
3

The person responsible for withholding RSCT—

(a)

has been notified under section 28C of the Tax Administration Act 1994 that 17.5 cents in the dollar is equal to or greater than the person’s retirement scheme prescribed rate; and

(b)

has been supplied with the tax file number of the person.

0.175
4

The person responsible for withholding RSCT—

(a)

has been notified under section 28C of the Tax Administration Act 1994 that 30 cents in the dollar is equal to or greater than the person’s retirement scheme prescribed rate; and

(b)

has been supplied with the tax file number of the person.

0.300
5

The person responsible for withholding RSCT—

(a)

has been notified under section 28C of the Tax Administration Act 1994 that 33 cents in the dollar is equal to or greater than the person’s retirement scheme prescribed rate; and

(b)

has been supplied with the tax file number of the person.

0.330
6

When none of rows 1 to 5 apply.

0.390

How to use this table:

Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.

Schedule 1 part D clause 7: added, on 1 July 2008, by section 554(3) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

Schedule 1 part D table 5: replaced, on 1 April 2021, by section 22 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).

Part E Shoulder references

The shoulder references for this schedule are the following sections:

CB 28, CD 53, CS 1, EK 8, EK 12, EK 23, EX 20, EX 50, EY 43, FE 22, HA 15, HA 24, HC 22, HC 34, HF 1, HL 29, LC 1, LC 2, LE 2, LJ 5, LP 8, LP 10, OA 18, OB 19, OB 42, OB 46, OB 69, OB 73, OB 75, OB 78, OB 80, OE 7, OE 8, OP 100, OP 102, RD 50, RD 51, RD 66, RD 67, RD 69, RD 70, RD 72, RE 11–RE 19, RF 9, RF 12, RM 21, YA 1.

Schedule 1 part E: amended, on 1 April 2017, by section 296 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Schedule 1 part E: amended (with effect on 30 June 2009), on 6 October 2009, by section 577(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).