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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:

“Tax exemptions for certain overseas investment funds selling shares or financial products”

If you are a foreign PIE equivalent, any money you make from selling shares in a year is considered excluded income for that year. This means you don’t have to pay tax on it.

The same rule applies to money you make from selling financial arrangements. However, there’s an exception to this rule. If you earn interest that falls under a specific category listed in another part of the law, you might still need to pay tax on that interest.

A foreign PIE equivalent is a type of investment fund that operates outside of New Zealand but is similar to a Portfolio Investment Entity (PIE) in New Zealand.

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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.

Topics:
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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).