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Income Tax Act 2007

General collection rules - Withholding tax on resident passive income (RWT)

RE 14C: Non-cash dividends distributed through intermediaries

You could also call this:

“Rules for foreign companies passing non-cash dividends through other groups”

This law is about non-cash dividends that come from foreign companies through other people or groups. It says that sections RE 4 and RE 14 don’t apply in certain situations. These situations happen when a company or a trust gets a non-cash dividend from a foreign company and then passes it on to someone else in the same year.

The company or trust must give the dividend to a real person who owns part of the foreign company or who benefits from the trust. When they do this, they’re acting like a go-between. This means they’re not keeping the dividend for themselves, but just helping it get to the right person.

For this rule to work, the company or trust has to give out the dividend in the same year they got it. If they wait longer than that, this special rule won’t apply.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS35573.

Topics:
Money and consumer rights > Taxes
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“Rules for tax on dividends that are part cash and part non-cash”

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Part R General collection rules
Withholding tax on resident passive income (RWT)

RE 14CNon-cash dividends distributed through intermediaries

  1. Sections RE 4 and RE 14 do not apply in relation to a non-cash dividend when—

  2. a company or trustee of a trust—
    1. receives the dividend from a foreign company; and
      1. attributes or distributes the dividend to a shareholder in the foreign company or to a beneficiary of the trust, as applicable, who is in either case a natural person; and
        1. acts as an intermediary in relation to the attribution or distribution of the dividend; and
        2. the attribution or distribution is made in the same income year in which the dividend is received.

          Notes
          • Section RE 14C: inserted, on (with effect on 1 April 2017 and applying for the 2017–18 and later income years), by section 225(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section RE 14C: amended (with effect on 1 April 2017), on , by section 117(1) (and see section 117(6) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
          • Section RE 14C paragraph (a)(i): amended (with effect on 1 April 2017), on , by section 117(2) (and see section 117(6) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
          • Section RE 14C paragraph (a)(ii): amended (with effect on 1 April 2017), on , by section 117(3) (and see section 117(6) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
          • Section RE 14C paragraph (a)(iii): amended (with effect on 1 April 2017), on , by section 117(4) (and see section 117(6) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
          • Section RE 14C paragraph (b): amended (with effect on 1 April 2017), on , by section 117(5) (and see section 117(6) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).