Income Tax Act 2007

  • not the latest version
CW 59 New Zealand companies operating in Niue
Exempt income: income wholly or mainly from Niue

(1)

An amount of income derived by a company incorporated in New Zealand that derives its income wholly or mainly from Niue is exempt income.

Exclusion

(2)

Subsection (1) does not apply if the company, if it were a foreign company, would at any time during the income year in which the amount is derived be a controlled foreign company.

Exempt income: dividends

(3)

A dividend derived from a company incorporated in New Zealand that derives its income wholly or mainly from Niue is exempt income, unless the dividend is derived by—

(a)

a person who is resident in New Zealand; or

(b)

a company that is a controlled foreign company at any time during the income year in which the amount is derived; or

(c)

a trustee of a trust of which a settlor or beneficiary is resident in New Zealand during the income year in which the amount is derived.

Exempt income: Niue development projects

(4)

An amount of income derived by a company incorporated in New Zealand from a business or enterprise that the company carries on in Niue is exempt income if—

(a)

the business or enterprise is declared by an Order in Council made under subsection (7) to be a development project for the purposes of this section; and

(b)

the company’s income is derived wholly or mainly from that business or enterprise; and

(c)

the amount is derived from sources in Niue; and

(d)

the amount is derived while the Order in Council is in force.

Exclusions

(5)

Subsections (1), (3), and (4) do not apply to—

(a)

an amount of income derived from sources in New Zealand; or

(b)

a dividend, to the extent to which it constitutes distribution of an amount derived by the company from sources in New Zealand.

Attributed CFC income and FIF income

(6)

This section does not restrict the application of section CQ 1 (Attributed controlled foreign company income), or CQ 4 (Foreign investment fund income), or the FIF rules. For the purposes of the FIF rules, a company that derives its income wholly or mainly from Niue and has exempt income under subsection (1) is treated as a foreign company.

Order in Council declaring Niue development project

(7)

The Governor-General may make an Order in Council declaring a business or enterprise to be a development project for the purposes of this section if satisfied that the business or enterprise—

(a)

has been or will be entered upon wholly or mainly for the purpose of developing Niue; or

(b)

is or will be important in the development of Niue.

Defined in this Act: amount, attributed CFC income, business, company, controlled foreign company, dividend, exempt income, FIF, FIF rules, foreign company, income, income year, resident in New Zealand, settlor, source in New Zealand, trustee

Compare: 2004 No 35 s CW 47