Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Excluded income - Definitions

CX 57: Credits for investment fees

You could also call this:

“Tax credits for investment fees in certain funds don't count as taxable income”

When you invest in a multi-rate PIE (Portfolio Investment Entity), the PIE might include a credit for fees when it calculates its tax. This credit is related to you as an investor in the PIE. If part of this credit is given to you because you’re an investor, you don’t have to count that amount as income. This means you won’t have to pay tax on it. The law that talks about how PIEs calculate their tax is called section HM 47.

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 It might be out of date or be missing some parts.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=DLM1513479.

Topics:
Money and consumer rights > Taxes
Previous

CX 56C: Distributions to investors by listed PIEs, or

“How PIE distributions to NZ residents are taxed”

Next

CX 57B: Amounts derived during periods covered by calculation methods, or

“Money from foreign investments not taxed when using specific calculation methods”

Part C Income
Excluded income: Definitions

CX 57Credits for investment fees

  1. This section applies when—

  2. a multi-rate PIE includes a credit for fees in the calculation of its tax liability under section HM 47 (Calculation of tax liability or tax credit of multi-rate PIEs) in relation to an investor in an investor class of the PIE; and
    1. an amount of the credit is attributed to the investor as a member of the class.

      1. The amount allocated is excluded income of the investor.

      Notes
      • Section CX 57: substituted, on (applying for the 2010–11 and later income years), by section 66(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).