(October 28, 2014)

On October 28, 2014 the New Zealand Inland Revenue published a revised/updated Tax sparing disclosure return (IR 486). This return is for the disclosure of tax sparing credits claimed under double tax agreements.

What is tax sparing?

Tax sparing is the term used to describe a concession given under a double tax agreement. It allows a taxpayer to claim a domestic credit for tax that the double tax agreement deems to have been paid in a foreign country in terms of the elimination of the double taxation article. 

Who is required to file a disclosure return?

A taxpayer (companies and individuals) who has claimed a foreign tax credit in respect of a tax sparing arrangement under a double taxation agreement must file a Tax sparing disclosure return (IR 486). A separate disclosure return is required for each tax spared arrangement entered into.

Click here to be forwarded to the Tax sparing disclosure return (IR 486) as published on the website of the New Zealand Inland Revenue, which will open in a new window.

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