Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from holding property (excluding equity)

CC 4: Payments of interest

You could also call this:

“How interest earnings and related income are treated for tax purposes”

When you earn interest, it counts as income for you. This means you have to include it when you calculate how much money you’ve made.

If you sell something like a bond before the interest is paid, the interest is split between you and the person who buys it. This is fair because you owned it for part of the time.

There’s also something called ‘non-resident financial arrangement income’. If you get this type of income, it also counts as income for you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512514.

Topics:
Money and consumer rights > Taxes
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“Income from financial arrangements and debt forgiveness for trustees”

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“How regular payments from annuities are treated as income”

Part C Income
Income from holding property (excluding equity)

CC 4Payments of interest

  1. Interest derived by a person is income of the person.

  2. Interest due but unpaid on the date on which a person disposes of a security is apportioned between the person disposing of the security and the person acquiring it.

  3. Non-resident financial arrangement income derived by a person is income of the person.

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Notes
  • Section CC 4(3) heading: inserted, on , by section 15(1) (and see section 5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section CC 4(3): inserted, on , by section 15(1) (and see section 5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
  • Section CC 4 list of defined terms non-resident financial arrangement income: inserted, on , by section 15(2) (and see section 5) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).