Skip to main content

Security From 30 October, we are increasing the security of our websites. If you have an old browser, you may need to update it.

Te tātai i tētahi whiwhinga tāke manatū Māori Calculate a Māori authority tax credit

Back

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.

My responsibilities

The maximum credit ratio available to be used is 17.5:82.5. This means up to $17.50 of Māori authority credits can be attached to every $82.50 of dividends.