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Income Tax Act 2007

Income - Excluded income - Definitions

CX 55B: Proceeds from disposal of certain shares and financial arrangements

You could also call this:

“No tax on money from selling certain shares or investments”

When you dispose of certain shares, you do not have to pay tax on the money you get from them. This is because the money from disposing of these shares is considered excluded income. You also do not have to pay tax on the money you get from disposing of certain financial arrangements. This rule about financial arrangements does not apply to a certain type of interest that is listed in the schedule 6, table 1B, row 6, which is about prescribed rates for investments and retirement scheme contributions. You should look at the details of the schedule 6 to understand what interest is included.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS32660.

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CX 55: Proceeds from disposal of investment shares, or

"Tax rules for selling certain investment shares"

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Part C Income
Excluded income: Definitions

CX 55BProceeds from disposal of certain shares and financial arrangements

  1. An amount that a foreign PIE equivalent derives for an income year from the disposal of a share is excluded income of the foreign PIE equivalent for the income year.

  2. An amount that a foreign PIE equivalent derives for an income year from the disposal of a financial arrangement is excluded income of the foreign PIE equivalent for the income year.

  3. Subsection (2) does not apply to an amount of interest referred to in schedule 6, table 1B, row 6 (Prescribed rates: PIE investments and retirement scheme contributions).

Notes
  • Section CX 55B: inserted, on (with effect on 1 April 2012 and applying for the 2012–13 and later income years), by section 39(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).