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EY 47: Deductions for disposal of property
or “This rule about tax deductions for selling property no longer applies”
You could also call this:

“Tax rules for overseas insurers selling life policies in New Zealand”

This law talks about life insurance companies that don’t live in New Zealand but sell life insurance to people here. If you’re not from New Zealand but you sell life insurance here, this is what you need to know:

When you offer or sell life insurance in New Zealand, the money you make from it counts as income from New Zealand. This means you might have to pay tax on it.

The law splits your income and expenses into two parts: one for the people who buy your insurance (called policyholders) and one for the company owners (called shareholders). This split only applies to insurance policies you sell in New Zealand and any reinsurance policies that are just for those New Zealand policies.

When figuring out how much money you made from your life insurance business in New Zealand, you only look at what you did here. You don’t include any business you did in other countries.

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Next up: EY 49: Non-resident life insurer becoming resident

or “ Non-resident insurers can apply to be treated as NZ residents for tax purposes ”
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Part E Timing and quantifying rules
Life insurance rules: Transitional adjustments and annuities

EY 48Non-resident life insurers with life insurance policies in New Zealand

  1. This section applies when a life insurer not resident in New Zealand offers or is offered or enters into life insurance policies in New Zealand.

  2. The life insurer’s income from the business of providing life insurance, as determined under this section, is income that has a source in New Zealand.

  3. The life insurer's income and deductions are apportioned between their policyholder base or shareholder base under the provisions of this subpart to the extent to which the income or deductions relate to—

  4. life insurance policies that the life insurer, as insurer, offered or was offered or entered into in New Zealand:
    1. life reinsurance policies held by the life insurer that relate exclusively to life insurance policies described in paragraph (a).

      1. The life insurer’s income from the business of providing life insurance, other than under the provisions of this subpart, is determined only in relation to the life insurer’s New Zealand business.

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      Notes
      • Section EY 48(2) heading: substituted, on , by section 60(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
      • Section EY 48(2): amended, on , by section 60(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
      • Section EY 48(3) heading: substituted, on , by section 193(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section EY 48(3): substituted, on , by section 193(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section EY 48(4): amended, on , by section 193(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section EY 48 list of defined terms derived from New Zealand: repealed, on , by section 60(3)(a) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
      • Section EY 48 list of defined terms source in New Zealand: inserted, on , by section 60(3)(b) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).