Before you start
- your company's IRD number
- the total amount of deducted tax you're transferring to the company's shareholder-employees
- IRD numbers for each of those shareholder-employees
- the amounts of deducted tax you're transferring to each shareholder-employee
- the total schedular payments made to the company.
In myIR, go to your income tax account
This is on the homepage once you've logged in under your company's account.
Select 'File or amend a return'
You'll find this under 'Payments, refunds and returns'.
Select your company's income tax return - IR4
Follow the prompts to file your return and show schedular tax deducted.
Make sure your company does not claim the tax credits being transferred to employee-shareholders.
Update your company's imputation credit account
Follow the prompts for updating your company's imputation credit account (ICA).
The amount of tax you're transferring to the shareholder-employees needs to be recorded as a debit entry.
To update your company's ICA separately from your company's income tax return - IR4, file an Annual imputation return - IR4J.
Send us a note in myIR
Send us a message in myIR. For each shareholder-employee, you'll need to show:
- their name
- their IRD number
- how much tax you transferred.
We cannot transfer the tax without these details.
Log in to myIR
What happens next
We'll make the transfer when we process your company's income tax return - IR4. If your company updates its imputation credit account separately, we'll make the transfer when we get the IR4J form.
The shareholder-employees being transferred tax must record this amount in their Individual income tax returns - IR3.
Your company cannot transfer more tax than was deducted from its schedular payments.
You'll also need to make sure your company is eligible to transfer tax credits to shareholder-employees.