Imputation Credit Gross-Up Calculator

When a New Zealand company pays a dividend it can attach imputation credits, which represent company tax already paid on the profit behind that dividend. This Imputation Credit Gross-Up Calculator turns the cash dividend you receive into the gross amount you must declare, shows the credit attached, and estimates the tax you still owe at your marginal rate. You enter the cash dividend paid into your account, the imputation ratio used by the company, and your marginal tax rate. The tool grosses the dividend up by adding the credit, then applies your rate to the gross figure and subtracts the credit to leave the tax to pay. A fully imputed dividend carries a credit of 28 divided by 72 of the cash amount, because company tax is 28 percent, so a $720 cash dividend grosses up to $1,000 with a $280 credit. Investors, shareholders in their own company, and anyone completing an IR3 return use this to check the gross dividend and imputation credit figures on a dividend statement before filing. Good practice is to read the credit straight off the statement rather than assuming full imputation, since not every dividend is fully imputed. Keep every dividend statement so the credits can be claimed, and remember that resident withholding tax of 33 percent on the gross may already have been deducted, which reduces what is left to pay. Higher-rate taxpayers usually owe a top-up, while lower-rate taxpayers may have credits to offset other income. Always confirm your figures against your statement and IRD records.

Credit = cash x 28/72 x ratio. Gross = cash + credit. Tax to pay = gross x rate - credit. Estimate only, not financial or tax advice.