Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Excluded income - Definitions

CX 41: Resident insurance underwriters

You could also call this:

“Rules for New Zealand residents who run insurance businesses”

This law is about people or groups of people who live in New Zealand and run an insurance business. It applies to you if you’re a person or a group of people (not a company) who:

  1. Live in New Zealand
  2. Run a business that offers general insurance or guarantees against loss, damage, or risk
  3. Are responsible for paying (or helping to pay) claims made by people you’ve insured

If you fit this description, some of the money you make from running this business outside of New Zealand won’t be counted as income in New Zealand. This only applies to certain types of income that aren’t mentioned in section YD 4(7) or (10) to (12) of the law.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513429.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
Previous

CX 40: Superannuation fund deriving amount from life insurance policy, or

“Tax exemption for super funds receiving money from NZ life insurance policies”

Next

CX 42: Disposal of ownership interests in controlled petroleum mining entities, or

“ Tax rules for selling shares in oil and gas companies ”

Part C Income
Excluded income: Definitions

CX 41Resident insurance underwriters

  1. This section applies when a natural person or an unincorporated body of natural persons—

  2. is resident in New Zealand; and
    1. carries on a business of providing general insurance or guarantees against loss, damage, or risk; and
      1. as part of the business, is liable under an insurance contract, whether or not named in it, to pay, or to contribute towards the payment of, some or all of an amount claimable by the person insured under the contract.

        1. Income that the natural person or persons derive from carrying on the business outside New Zealand is excluded income to the extent to which it is income not referred to in any of section YD 4(7) or (10) to (12) (Classes of income treated as having New Zealand source).

        Compare