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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Requirements

HM 19C: Modified rules for foreign investment variable-rate PIEs

You could also call this:

“Special rules limit land investments for certain foreign investment funds”

This law sets out special rules for foreign investment variable-rate PIEs. These are a type of investment fund in New Zealand.

If you have this type of investment fund, you can’t invest in land in New Zealand. You also can’t invest in rights or options related to New Zealand land.

The money your fund makes can’t come from owning land in New Zealand. It also can’t come from selling land in New Zealand.

These rules are different from the usual rules for PIEs. They limit what foreign investment variable-rate PIEs can do with New Zealand land.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4020224.

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Part H Taxation of certain entities
Portfolio investment entities: Requirements

HM 19CModified rules for foreign investment variable-rate PIEs

  1. Despite section HM 11(1)(a) and (b), no investment of a foreign investment variable-rate PIE may include an interest in land in New Zealand or a right or option in relation to land in New Zealand.

  2. Despite section HM 12(1)(a) and (b)(iv) and (v), the income derived by a foreign investment variable-rate PIE must not include an amount derived from—

  3. an interest in land in New Zealand:
    1. the disposal of an interest in land in New Zealand.

      Notes
      • Section HM 19C: 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 63(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
      • Section HM 19C(1): amended (with effect on 29 August 2011), on , by section 64 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
      • Section HM 19C(1): amended (with effect on 1 April 2012), on (applying for the 2012–13 and later income years), by section 94(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
      • Section HM 19C(2): amended (with effect on 1 April 2012), on (applying for the 2012–13 and later income years), by section 94(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).