Part C
Income
Exempt income
CW 59New Zealand companies operating in Niue
An amount of income derived by a company incorporated in New Zealand that derives its income wholly or mainly from Niue is exempt income.
Subsection (1) does not apply if the company, if it were a foreign company, would at any time during the income year in which the amount is derived be a controlled foreign company.
A dividend derived from a company incorporated in New Zealand that derives its income wholly or mainly from Niue is exempt income, unless the dividend is derived by—
- a person who is resident in New Zealand; or
- a company that is a controlled foreign company at any time during the income year in which the amount is derived; or
- a trustee of a trust of which a settlor or beneficiary is resident in New Zealand during the income year in which the amount is derived.
An amount of income derived by a company incorporated in New Zealand from a business or enterprise that the company carries on in Niue is exempt income if—
- the business or enterprise is declared by an Order in Council made under subsection (7) to be a development project for the purposes of this section; and
- the company’s income is derived wholly or mainly from that business or enterprise; and
- the amount is derived from sources in Niue; and
- the amount is derived while the Order in Council is in force.
Subsections (1), (3), and (4) do not apply to—
- an amount of income derived from sources in New Zealand; or
- a dividend, to the extent to which it constitutes distribution of an amount derived by the company from sources in New Zealand.
This section does not restrict the application of section CQ 1 (Attributed controlled foreign company income), or CQ 4 (Foreign investment fund income), or the FIF rules. For the purposes of the FIF rules, a company that derives its income wholly or mainly from Niue and has exempt income under subsection (1) is treated as a foreign company.
The Governor-General may make an Order in Council declaring a business or enterprise to be a development project for the purposes of this section if satisfied that the business or enterprise—
- has been or will be entered upon wholly or mainly for the purpose of developing Niue; or
- is or will be important in the development of Niue.
An Order in Council under this section is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Compare
- 2004 No 35 s CW 47