RF 12 Interest paid by approved issuers or transitional residents
When this section applies

(1)

This section applies in relation to an amount of non-resident passive income that consists of—

(a)

interest that—

(i)

is paid by an approved issuer under a registered security; and

(ii)

unless the approved issuer is a member of a New Zealand banking group as described in section FE 33 (New Zealand banking group), is derived by a person not associated with the approved issuer except by being a beneficiary of a trust established for the main purpose of protecting and enforcing beneficiaries’ rights under the registered security; and

(iii)

is not a payment to which section RF 12B applies; and

(iv)

does not relate to related-party debt:

(b)

interest that—

(i)

is paid by a transitional resident in relation to money borrowed by them while non-resident; and

(ii)

is not paid in relation to a business carried on through a fixed establishment in New Zealand; and

(iii)

is derived by a person not associated with the transitional resident; and

(iv)

is not a payment to which section RF 12B applies.

Zero-rating

(2)

The rate of NRWT payable on the amount is 0%.

Interest paid under registered securities

(3)

For the purposes of the NRWT rules, an amount of interest is paid by an approved issuer under a registered security only if it is treated as paid in relation to a registered security under section 86I of the Stamp and Cheque Duties Act 1971.

Defined in this Act: amount, approved issuer, associated person, business, company, fixed establishment, income, interest, life insurer, New Zealand, New Zealand banking group, non-resident, non-resident passive income, NRWT, NRWT rules, pay, registered security, related-party debt, resident in New Zealand, transitional resident

Compare: 2004 No 35 s NG 2(1)(b)(i), (ib)

Section RF 12: substituted (with effect on 1 April 2008), on 6 October 2009, by section 536(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

Section RF 12(1)(a)(ii): replaced, on 30 March 2017, by section 278(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RF 12(1)(a)(iii): amended, on 30 March 2017, by section 278(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RF 12(1)(a)(iv): inserted, on 30 March 2017, by section 278(3) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RF 12(3): amended (with effect on 1 April 2008), on 7 December 2009, by section 116 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section RF 12 list of defined terms New Zealand banking group: inserted, on 30 March 2017, by section 278(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section RF 12 list of defined terms related-party debt: inserted, on 30 March 2017, by section 278(4) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).