Income Tax (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2018–19 Income Year) Order 2019

2019/204

Coat of Arms of New Zealand

Income Tax (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2018–19 Income Year) Order 2019

Patsy Reddy, Governor-General

Order in Council

At Wellington this 26th day of August 2019

Present:
Her Excellency the Governor-General in Council

This order is made under section EX 55 of the Income Tax Act 2007 and section 225(1)(f) of the Tax Administration Act 1994 on the advice and with the consent of the Executive Council.

Order

1 Title

This order is the Income Tax (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2018–19 Income Year) Order 2019.

2 Commencement

This order comes into force on 26 September 2019.

3 Deemed rate of return on attributing interests in foreign investment funds for 2018–19 income year

The deemed rate of return applying for the 2018–19 income year for the purposes of section EX 55(4)(b) and (6)(c) of the Income Tax Act 2007 is 5.86%.

Michael Webster,
Clerk of the Executive Council.

Explanatory note

This note is not part of the order, but is intended to indicate its general effect.

This order sets, for the 2018–19 income year, the deemed rate of return used to calculate foreign investment fund income under the deemed rate of return calculation method set out in section EX 55 of the Income Tax Act 2007.

This order sets the deemed rate of return for the 2018–19 income year at 5.86%. The deemed rate of return set for the 2017–18 income year was 6.44%.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 29 August 2019.

This order is administered by the Inland Revenue Department.