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Income Tax Act 2007

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

RF 11C: Interest paid by non-resident companies to non-residents

You could also call this:

“ How interest payments from overseas companies to overseas people are taxed in New Zealand ”

This section talks about how interest payments are treated when they’re made by companies that are not in New Zealand to people who are also not in New Zealand. You need to know that this applies when the interest is paid by a company that lives in another country, according to a special agreement between countries called a double tax agreement. The person getting the interest must also live in another country, based on this agreement.

Even if the agreement between the countries might say the payment should be treated as a dividend, this section says it should still be treated as interest. The rules for non-resident withholding tax (NRWT) and the agreement between the countries will apply to this interest payment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS58049.

Topics:
Money and consumer rights > Taxes
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“Dividends paid to companies living in two countries”

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“Special tax rules for certain types of interest payments to non-residents”

Part R General collection rules
Withholding tax on non-resident passive income (NRWT)

RF 11CInterest paid by non-resident companies to non-residents

  1. This section applies in relation to an amount of non-resident passive income that consists of interest and is paid—

  2. by a company that is resident in a country or territory outside New Zealand for the purposes of a double tax agreement; and
    1. to a person that is resident in a country or territory outside New Zealand for the purposes of the double tax agreement.

      1. The double tax agreement and the NRWT rules apply to the amount as being interest, despite any provision in the double tax agreement that would otherwise require the amount to be treated as being a dividend.

      Notes
      • Section RF 11C: inserted (with effect on 1 April 2008), on , by section 47(1) (and see section 47(2) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).