Section HM 57B — Income Tax Act 2007: Prescribed investor rates for new residents

HM 57B Prescribed investor rates for new residents When this section applies (1) This section applies for the purposes of determining a person's prescribed investor rate under schedule 6 , table 1 (Prescribed rates: investments and retirement scheme contributions) when the person becomes a New Zealand resident. Determining rate (2) Despite section BD 1(5)(c) (Income, exempt income, excluded income, non-residents' foreign-sourced income, and assessable income), the person must include the total amount of their non-residents' foreign-sourced income in their assessable income. Choosing not to apply this section (3) The person may choose not to apply this section for either the income year in which they become a New Zealand resident or the following income year (the resident years ) or for both resident years, if they reasonably expect that their taxable income in the relevant resident year will be significantly lower than their total income from all sources for the income year before the first resident year. Relationship with section CW 27 (4) Section CW 27 (Certain income derived by transitional resident) is ignored for the purposes of this section. Defined in this Act: amount , assessable income , income , income year , New Zealand resident , non-residents' foreign-sourced income , prescribed investor rate , taxable income Section HM 57B: inserted, on 1 April 2012 (applying for the 2012–13 and later income years), by section 81(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).