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If Māori authorities choose to add credits to distributions, they will need to calculate their credit ratio. The first distribution with this ratio will set the amount of attachable credits for future payments.

Work out your net profit

Subtract provisional tax of 17.5% from your Māori authority profit.

The amount left is the net profit available for distribution.

Calculate the ratio

Divide your chosen credit amount by the available distribution.

The amount left is the base ratio of credits to distributions.

Apply this ratio to future distributions

You can complete a Ratio change declaration - IR407 to change your base ratio.

Declare a ratio change

My responsibilities

The maximum credit ratio you can use is 17.5:82.5.

This means up to $17.50 of Māori authority credits can be attached to every $82.50 of dividends.