Documents numbered between 400 and 499
Branch equivalent tax account return for companies IR408
About this form
A branch equivalent tax account (BETA) is a memorandum account used to prevent double taxation of income.
Adobe Acrobat PDF | 74kb | 2 pages
When to use this form
A BETA is used to prevent double taxation of:
- attributed foreign income derived from an income interest of 10% or greater in a controlled foreign company (CFC)
- income arising from an interest in a foreign investment fund (FIF)
- where the branch equivalent method or accounting profits method is used, or
- which is held either through a CFC or an FIF where the branch equivalent method is used.
This return must be completed by a New Zealand resident company that maintains a branch equivalent tax account (BETA). A person (other than a company) who maintains a BETA must complete the Branch equivalent tax account return (IR308).
Under the new international tax rules:
- no further BETA debits can be generated for tax paid on dividends,
- no further credits can be generated for tax paid on attributed foreign income, and
- all BETA credit balances need to be written off.
However, BETA debit balances can be carried forward and used for a two year transitional period. The new rules apply from the beginning of the 2010 income year for all entities with a balance date between 30 June and 30 September (inclusive) and from the beginning of the 2011 income year for all other entities.
What you will need
Your IRD number.
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After you finish
Attach this completed form to the company's income tax return.
