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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Using tax credits

HM 55E: Changes in status of investors in foreign investment PIEs

You could also call this:

“How foreign investment PIEs handle changes in investor residency or status”

This section talks about what happens when people change their status as investors in foreign investment PIEs (Portfolio Investment Entities). If you are a notified foreign investor in a foreign investment PIE, and you become a resident of New Zealand or cancel your notified foreign investor status, this section applies to you. It also applies if you are an investor living in New Zealand who becomes a non-resident and chooses to become a notified foreign investor.

When your status changes, the PIE must change how they treat you as soon as they can. At the latest, they must make this change from the beginning of the next tax year.

If you want to know more about cancelling your notified foreign investor status, you can look at section HM 55D(8). If you’re interested in choosing to become a notified foreign investor when you become a non-resident, you can check section HM 55D(2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4025513.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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HM 55D: Requirements for investors in foreign investment PIEs, or

“Rules for foreign investors in special New Zealand investment funds”

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HM 55F: Treatment of income attributed to notified foreign investors, or

“Tax rules for foreign investors in special investment funds”

Part H Taxation of certain entities
Portfolio investment entities: Using tax credits

HM 55EChanges in status of investors in foreign investment PIEs

  1. This section applies when—

  2. a person who is a notified foreign investor in a foreign investment PIE—
    1. becomes resident in New Zealand in a tax year; or
      1. cancels their notified foreign investor status in a tax year under section HM 55D(8):
      2. a person who is an investor in a foreign investment PIE and who is resident in New Zealand becomes non-resident in a tax year and chooses under section HM 55D(2) to have notified foreign investor status.

        1. The PIE must change the treatment of the person as soon as reasonably practicable. But, at the latest, the change must be made from the start of the following tax year.

        Notes
        • Section HM 55E: 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 79(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).