The temporary loss carry-back scheme lets businesses expecting a loss in either the 2020 or 2021 year to offset that loss against income in the previous year and receive a refund of some or all of the tax paid in that previous year. To be eligible you will need to meet the criteria below.
Multi-rate portfolio investment entities are not eligible.
You are not eligible if you receive an automatically calculated income tax assessment in the year the loss was made because your only income was from:
- salary or wages
- NZ Superannuation
- schedular payments
- income-tested benefits
- interest or dividends
- taxable Māori authority distributions
- benefits under an employee share scheme.
You need to have:
- incurred, or expect to incur a loss in the 2020 or the 2021 tax year
- made a profit in the year before the loss was made.
Companies need to also meet these conditions to be eligible:
- The company has maintained 49% common ownership throughout the loss year and preceding year.
- The group has retained 66% common ownership throughout the loss year and preceding year.
- You have a sufficient imputation credit account balance to cover any refund.