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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Exit rules

HM 30: When foreign PIE equivalent no longer meets requirements

You could also call this:

“Rules for when a foreign investment loses its PIE-like status”

If you’re a foreign PIE equivalent, you can lose your status in two ways:

You immediately lose your status if you become a resident in New Zealand or if a double tax agreement treats you as a resident in New Zealand.

You also lose your status if you don’t meet the requirements set out in section HM 3(1)(b) to (e) for two quarters in a row. In this case, you lose your status on the first day of the third quarter.

A PIE is a type of investment, and these rules are about when a foreign investment that’s similar to a PIE no longer meets the requirements to be treated like one.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888770.

Topics:
Money and consumer rights > Taxes
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HM 29: Choosing to cancel status, or

“How to cancel your status as a Portfolio Investment Entity (PIE)”

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HM 31: Rules for multi-rate PIEs, or

“How multi-rate PIEs handle taxes and investor payments”

Part H Taxation of certain entities
Portfolio investment entities: Exit rules

HM 30When foreign PIE equivalent no longer meets requirements

  1. A foreign PIE equivalent loses its status immediately if—

  2. it becomes resident in New Zealand:
    1. it is treated under a double tax agreement as resident in New Zealand.

      1. A foreign PIE equivalent loses its status if it no longer meets the requirements set out in section HM 3(1)(b) to (e) at the end of 2 consecutive quarters. The loss of status takes effect from the first day of the third quarter.

      Compare
      • s HL 5(2)
      Notes
      • Section HM 30: inserted, on (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section HM 30(1): replaced, on , by section 96(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
      • Section HM 30(2): amended, on , by section 127 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section HM 30 list of defined terms double tax agreement: inserted, on , by section 96(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).