Section EX 43 — Income Tax Act 2007: Non-resident’s pension or annuity exemption

EX 43 Non-resident’s pension or annuity exemption Exemption (1) The rights of a natural person to benefit from a pension or annuity provided by a FIF are not an attributing interest if the requirements of subsections (2) and (3) are met. Relevant period of non-residence (2) The person must have provided the consideration for acquiring the rights— (a) when the person was not resident in New Zealand; or (b) when the person was resident in New Zealand but in the period ending 3 years after the end of the income year in which they last became a New Zealand resident; or (c) when the person was resident in New Zealand but as a result of commuting or transferring their interest in a superannuation fund in anticipation of their ceasing to be a New Zealand resident. Restricted rights to assign or cash in (3) The person’s future benefits must not be able to be assigned, or exchanged for a current receipt of cash, or other property, except— (a) if the person is assigning the benefit rights to a spouse under a relationship agreement; or (b) at the cost of a substantial decrease in the present value of the benefits. Elective exclusion of pre-1996–97 rights (4) Subsection (1) does not apply if— (a) the rights were acquired before the 1996–97 income year; and (b) the person chose to treat the rights as an interest in a foreign investment fund for the 1996–97 income year and later income years by complying with the requirements of section CG 15(4) of the Income Tax Act 1994. Defined in this Act: attributing interest , FIF , foreign investment fund , income year , matrimonial agreement New Zealand resident , non-resident , relationship agreement , resident in New Zealand , superannuation fund , year , Compare: 2004 No 35 s EX 37