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Income Tax Act 2007

Deductions - Specific rules for expenditure types

DB 54C: Certain expenditure incurred by foreign PIE equivalents

You could also call this:

"Money spent by overseas companies can't be claimed back"

Illustration for Income Tax Act 2007

When a foreign PIE equivalent spends money or has a loss to get an amount that section CX 55B applies to, you cannot claim that money back as a deduction. This means the foreign PIE equivalent is not allowed to subtract the expenditure or loss from their income. This rule is more important than the general rule that usually lets you claim deductions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS32733.

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Topics:
Money and consumer rights > Taxes
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DB 54B: Expenditure incurred by foreign investment PIEs, or

"Special tax rules for certain investments in foreign investment PIEs"

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DB 55: Expenditure incurred in deriving exempt dividend, or

" Spending to get tax-free dividends: this rule no longer applies "

Part DDeductions
Specific rules for expenditure types

DB 54CCertain expenditure incurred by foreign PIE equivalents

  1. This section applies for an income year when a foreign PIE equivalent incurs expenditure or loss in deriving an amount to which section CX 55B (Proceeds from disposal of certain shares and financial arrangements) applies.

  2. The foreign PIE equivalent is denied a deduction for the amount of the expenditure or loss.

  3. This section overrides the general permission.

Notes
  • Section DB 54C: inserted, on (with effect on 1 April 2012 and applying for the 2012–13 and later income years), by section 48(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).