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Income Tax Act 2007

General collection rules - Withholding tax on non-resident passive income (NRWT)

RF 12C: Amount derived from non-resident life insurer becoming resident

You could also call this:

“Tax rules when a foreign life insurer moves to New Zealand”

When a life insurer from another country becomes a resident in New Zealand, they might get money from a New Zealand company. This money is called non-resident passive income. If the life insurer gets permission to become a resident under section EY 49, this money becomes income for them.

In this case, the amount of tax the life insurer needs to pay on this money is special. The rate of Non-Resident Withholding Tax (NRWT) on this income is 0%. This means they don’t have to pay any NRWT on this particular income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2627292.

Topics:
Money and consumer rights > Taxes
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Part R General collection rules
Withholding tax on non-resident passive income (NRWT)

RF 12CAmount derived from non-resident life insurer becoming resident

  1. This section applies when an amount of non-resident passive income is—

  2. derived by a life insurer from a company resident in New Zealand; and
    1. treated as income as a result of the granting of the insurer's application under section EY 49 (Non-resident life insurer becoming resident).

      1. The rate of NRWT payable on the amount is 0%.

      Compare
      Notes
      • Section RF 12C: inserted (with effect on 1 April 2008), on , by section 536(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section RF 12C list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).