Income Tax Act 2007 section 449

Relief for other persons

Section 449 provides income tax relief for non-individual payers (such as companies, trusts or other entities) who make annual payments or patent royalty payments from which they are required to deduct income tax at source, where those payments cannot be deducted in calculating the payer's own income.

• Relief applies where a non-individual payer makes a payment from which income tax must be deducted at source, and that payment is not deductible in calculating the payer's own income
• The payer is entitled to relief equal to the gross amount of the payment, which is deducted when calculating the payer's net income for the tax year
• Relief is denied to the extent the payment is classified as ineligible for relief under the rules in section 450
• Total relief in any tax year is capped at the payer's modified net income for that year