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Income Tax Act 2007

Timing and quantifying rules - Life insurance rules - Transitional adjustments and annuities

EY 49: Non-resident life insurer becoming resident

You could also call this:

“ Non-resident insurers can apply to be treated as NZ residents for tax purposes ”

If you’re an insurance company that doesn’t live in New Zealand, you can ask to be treated like you do live there for your New Zealand business. You need to do this by filling out a form and giving it to the Commissioner at least 20 working days before the start of the tax year you want this to begin.

The Commissioner might say yes to your request. If they do, your New Zealand business will be treated like it’s run by a company that lives in New Zealand. It’s as if you own all the shares in this company.

You’ll still be in charge of your New Zealand business, but you’ll be doing it for this new company. You’ll need to pay any money owed to the Commissioner and give them any information they need, just like the company would.

Even though you’re running the business for the company, you and the company will be treated as separate for anything to do with your New Zealand business.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515970.

Topics:
Money and consumer rights > Taxes
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EY 48: Non-resident life insurers with life insurance policies in New Zealand, or

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

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EZ 1: Life insurers acquiring property before 1 April 1988, or

“Tax deductions for life insurers selling certain pre-1988 property”

Part E Timing and quantifying rules
Life insurance rules: Transitional adjustments and annuities

EY 49Non-resident life insurer becoming resident

  1. A life insurer not resident in New Zealand may apply to be treated for its New Zealand business as resident in New Zealand on and after the first day of a particular income year.

  2. The life insurer applies by—

  3. completing an application specifying the particular income year; and
    1. giving the application to the Commissioner not less than 20 working days before the start of the particular income year.

      1. The Commissioner may grant the application.

      2. If the application is granted, the life insurer’s New Zealand business is treated, on and after the first day of the particular income year, as being carried on by a company resident in New Zealand in which the life insurer holds all the issued shares.

      3. The life insurer is treated as carrying on its New Zealand business as agent for the company and is liable, as agent for the company, to pay amounts payable to the Commissioner and to provide returns of income and other information required by the Commissioner.

      4. The life insurer and the company are treated as being separate persons in relation to the life insurer’s New Zealand business.

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      Notes
      • Section EY 49(2)(a): amended, on , by section 40(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
      • Section EY 49 list of defined terms apply: inserted, on , by section 40(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).