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Income Tax Act 2007

Deductions - Expenditure specific to certain industries

DW 3: Non-resident general insurers and shippers

You could also call this:

“Rules for overseas insurers and shippers making money in New Zealand”

If you’re not from New Zealand and you make money from certain types of insurance or shipping, you can’t claim deductions for the costs of earning that money. This applies to two types of people:

  1. If you’re not a New Zealand resident and you make money from general insurance in New Zealand (as described in section CR 3), you can’t claim deductions for the costs of earning that money.

  2. If you’re not a New Zealand resident and you make money from shipping cargo, mail, or passengers from outside New Zealand (as described in section CV 16), you can’t claim deductions for the costs of earning that money. You also can’t claim any depreciation losses related to this income.

These rules override the general permission that usually allows you to claim deductions for your business expenses.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514193.

Topics:
Money and consumer rights > Taxes
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Part D Deductions
Expenditure specific to certain industries

DW 3Non-resident general insurers and shippers

  1. A person listed in subsection (2) is denied a deduction for expenditure incurred in deriving the income described in the relevant section.

  2. The persons referred to in subsection (1) are—

  3. a non-resident person who derives income under section CR 3 (Income of non-resident general insurer):
    1. a non-resident person who derives income under section CV 16 (Non-resident shippers) for cargo, mail, or passengers shipped outside New Zealand.

        1. The non-resident person referred to in subsection (2)(b) has no amount of depreciation loss in relation to that income.

        2. This section overrides the general permission.

        Compare
        Notes
        • Section DW 3 heading: replaced, on , by section 26(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
        • Section DW 3(2)(b): amended, on , by section 26(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
        • Section DW 3(2)(c): repealed, on , by section 26(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).