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If your company gets schedular payments with tax deducted, transfer those tax deductions to the company's shareholder-employees.

Gather your information

You'll need:

  • 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 scheduler payments made to the company.

After logging in to myIR, complete your company's income tax return - IR4

  • Follow the prompts for 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.

If you choose to update your company's ICA separate from your company's income tax return - IR4, use the following link.

File an Annual imputation return - IR4J

Send us a note in myIR

Send us a secure email in myIR. For each shareholder-employee, you'll need to show:

  • their name
  • their IRD number
  • how much tax you transferred.

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 that form.

The shareholder-employees being transferred tax must record this amount in their Individual income tax return - IR3.

Claim tax credits as a shareholder employee


My responsibilities

You must send us the note because we cannot make the transfer without those details for each shareholder-employee.

The amount of tax your company transfers cannot be more than the tax deducted from its schedular payments.

You'll need to make sure your company is eligible to transfer tax credits to shareholder-employees.

Transferring tax deducted from schedular payments to shareholder-employees

You may also transfer tax using the paper form of the Companies income tax return - IR4.

  • Use Boxes 10 and 10A if you're using the IR4 to update your company's imputation credit account.
  • In Box 12A, reduce the amount of tax credits by the amount you're transferring to shareholder-employees.
  • You'll still need to include the total schedular payments made to the company in Box 12B.
  • In Box 17A, make sure that the company does not claim the tax credits being transferred to shareholder-employees.
  • Attach a note with the return, showing the names, IRD numbers and how much tax is being transferred to each shareholder-employee.