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Income Tax Act 2007

Income - Excluded income - Definitions

CX 56C: Distributions to investors by listed PIEs

You could also call this:

“How PIE distributions to NZ residents are taxed”

If you invest in a listed PIE (Portfolio Investment Entity), you might get money from it as a distribution or dividend. This money won’t be counted as part of your income if you meet three conditions. First, you need to live in New Zealand. Second, you must be either a real person or a trustee. Third, you shouldn’t include this money as income when you file your tax return for that year.

If you don’t meet all these conditions, the money you get might still not be counted as income, but only for a certain part of it. The part that’s not counted is any amount that’s more than what’s called the “fully credited” amount. This “fully credited” amount is explained in another part of the law called [section CD 43(26)].

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2891827.

Topics:
Money and consumer rights > Taxes
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Part C Income
Excluded income: Definitions

CX 56CDistributions to investors by listed PIEs

  1. If an investor in a listed PIE derives an amount in an income year as a distribution by or dividend of the PIE, the amount is excluded income of the investor if they—

  2. are resident in New Zealand; and
    1. are a natural person or a trustee; and
      1. do not include the amount as income in a return of income for the income year.

        1. If subsection (1)(a) to (c) does not apply to the investor, the amount is excluded income to the extent to which the amount of the distribution or dividend is more than the amount that is fully credited as described in section CD 43(26) (Available subscribed capital amount).

        Notes
        • Section CX 56C: 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 56C(1)(a): amended (with effect on 1 April 2010), on , by section 88(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section CX 56C list of defined terms resident: repealed (with effect on 1 April 2010), on , by section 88(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
        • Section CX 56C list of defined terms resident in New Zealand: inserted (with effect on 1 April 2010), on , by section 88(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).