Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from equity

CD 9: Interests in money or property of foreign unit trust

You could also call this:

“Money or property you receive from owning part of a foreign unit trust is treated as a dividend”

If you own part of a unit trust that’s a foreign company, and you get some money or property from it, this is called a dividend. The amount of the dividend is whatever the money or property is worth.

A unit trust is like a group investment where lots of people put their money together. When it’s a foreign company, it means it’s not based in New Zealand.

If you have a right to some of the money or property in this foreign unit trust, and you actually get it, then it counts as a dividend for you. This means you might need to pay tax on it, just like other kinds of income.

The value of what you get, whether it’s cash or something else, is how much the dividend is worth. So if you get $100 or a painting worth $100, both would count as a $100 dividend.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512560.

Topics:
Money and consumer rights > Taxes
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“Choosing to treat free shares as taxable income”

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CD 10: Bonus issue by foreign unit trust instead of money or property, or

“Foreign unit trusts may give bonus units instead of cash or property, which counts as a dividend”

Part C Income
Income from equity

CD 9Interests in money or property of foreign unit trust

  1. If a beneficial interest in money or property of a unit trust that is a foreign company vests absolutely in a unit holder, the money or property is a dividend for the unit holder.

  2. The amount of the dividend is the value of the money or property.

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