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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Elections and consequences

HM 71B: Choosing to become foreign investment PIE

You could also call this:

“How a multi-rate PIE can choose to become a foreign investment PIE for overseas investors”

You can become a foreign investment PIE if you’re a multi-rate PIE or can become one. This applies if you have or plan to have investors who don’t live in New Zealand. You also can’t use the provisional tax calculation option to work out your income tax.

If you meet the requirements in section HM 19B, you can choose to become a foreign investment zero-rate PIE.

You can choose to become a foreign investment variable-rate PIE if you meet the requirements in section HM 19C.

To make this choice, you need to tell the Commissioner. If you’re not already a multi-rate PIE, you must notify the Commissioner under section 31B of the Tax Administration Act 1994.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4033326.

Topics:
Money and consumer rights > Taxes
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HM 71: Choosing to become PIE, or

“How to choose to become a Portfolio Investment Entity (PIE)”

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“Timing and rules for starting or stopping as a PIE”

Part H Taxation of certain entities
Portfolio investment entities: Elections and consequences

HM 71BChoosing to become foreign investment PIE

  1. This section applies to an entity that—

  2. is, or is eligible to become, a multi-rate PIE; and
    1. has, or intends to have, investors who are not resident in New Zealand; and
      1. does not calculate its income tax liability using the provisional tax calculation option in section HM 44.

        1. The entity may choose to become a foreign investment zero-rate PIE if it meets the requirements of section HM 19B.

        2. An entity may choose to become a foreign investment variable-rate PIE if it meets the requirements of section HM 19C.

        3. The entity makes the election by advising the Commissioner. If the entity is not an existing multi-rate PIE, the entity must notify the Commissioner under section 31B of the Tax Administration Act 1994.

        Notes
        • Section HM 71B: 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 86(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).