All companies forming the imputation group must be wholly owned. They also must:
- be a tax resident in New Zealand or Australia and not treated as resident in another country for the purposes of a double tax agreement (DTA).
- maintain an imputation credit account.
- not be a qualifying company unless all members are qualifying companies.
- not be a mining company unless all members are mining companies.
- not be a member of a consolidated group unless all members of the consolidated group meet all the above criteria.
Consolidated groups who want to form imputation groups
All members of the consolidated group must also choose to be members of the imputation group.
Members from more than one consolidated group may only be part of an imputation group if the existing credits in the consolidated imputation accounts have the same shareholder continuity profile.
Consolidated groups cannot form imputation groups if they're doing so to get around the intent and application of the imputation rules.