Income Tax Act 2007

Income - Excluded income - Definitions

CX 56B: Distributions to investors in multi-rate PIEs

You could also call this:

“Income from multi-rate PIEs isn't taxed, except for some foreign investors”

When you invest in a multi-rate PIE, any income you get from it as a distribution or dividend is not taxed. This means you don’t have to pay tax on that money.

However, there’s an exception to this rule. If you’re a notified foreign investor in a foreign investment PIE, some of the money you get might be taxed. This happens when the PIE uses a special calculation method called the NRWT calculation option. In this case, part of your income might be treated as non-resident passive income, which is taxable.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2891825.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement

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CX 56: Attributed income of certain investors in multi-rate PIEs, or

“Income from certain PIE investments that may be tax-free”


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CX 56C: Distributions to investors by listed PIEs, or

“How PIE distributions to NZ residents are taxed”

Part C Income
Excluded income: Definitions

CX 56BDistributions to investors in multi-rate PIEs

  1. An amount of income derived by an investor in a multi-rate PIE as a distribution of or dividend of the PIE is excluded income of the investor.

  2. Despite subsection (1), an amount paid by a foreign investment PIE to a notified foreign investor in the PIE is not excluded income under this section to the extent to which it is treated under section HM 44B (NRWT calculation option) as non-resident passive income.

Notes
  • Section CX 56B: inserted, on (applying for the 2010–11 and later income years), by section 65(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section CX 56B(1) heading: inserted, on , by section 10(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section CX 56B(2) heading: inserted, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 10(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section CX 56B(2): inserted, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 10(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section CX 56B list of defined terms foreign investment PIE: inserted, on , by section 10(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section CX 56B list of defined terms non-resident passive income: inserted, on , by section 10(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
  • Section CX 56B list of defined terms notified foreign investor: inserted, on , by section 10(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).