Section HM 44B — Income Tax Act 2007: NRWT calculation option

HM 44B NRWT calculation option When this section applies (1) This section applies when— (a) a foreign investment PIE— (i) derives a dividend that is not fully imputed from a company resident in New Zealand; and (ii) pays an amount that represents some or all of the amount of the dividend to a notified foreign investor in the PIE by the date on which the PIE is required to pay its income tax liability under section HM 42 or HM 43 , as applicable; and (b) the PIE chooses to calculate and pay the tax liability in relation to the amount under subpart RF (Withholding tax on non-resident passive income). Excluding amount from calculation (2) In determining the net amount for notified foreign investors under sections HM 35 and HM 36 , to the extent to which the amount represents an unimputed portion of the dividend, the amount is not included in— (a) the item assessable income in section HM 35(3) : (b) the item income in section HM 36(3) . Non-resident passive income (3) The NRWT rules apply to the amount paid to the extent to which the amount represents an unimputed portion of the dividend. Relationship with section CX 56B (4) Despite section CX 56B (Distributions to investors in multi-rate PIEs), the amount is not excluded income of the notified foreign investor. Defined in this Act: amount , company , dividend , excluded income , foreign investment PIE , imputation credit , income tax liability , multi-rate PIE , non-resident passive income , notified foreign investor , NRWT rules , pay , resident in New Zealand Section HM 44B: inserted, on 29 August 2011 (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 74(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).