Section RF 12 — Income Tax Act 2007: Interest paid by approved issuers or transitional residents

RF 12 Interest paid by approved issuers or transitional residents When this section applies (1) This section applies in relation to an amount of non-resident passive income that consists of— (a) interest that— (i) is paid by an approved issuer under a registered security; and (ii) is derived by a person not associated with the approved issuer except by being a beneficiary of a trust established for the main purpose of protecting and enforcing beneficiaries' rights under the registered security; and (iii) is not a payment to which section RF 12B applies: (b) interest that— (i) is paid by a transitional resident in relation to money borrowed by them while non-resident; and (ii) is not paid in relation to a business carried on through a fixed establishment in New Zealand; and (iii) is derived by a person not associated with the transitional resident; and (iv) is not a payment to which section RF 12B applies. Zero-rating (2) The rate of NRWT payable on the amount is 0%. Interest paid under registered securities (3) For the purposes of the NRWT rules, an amount of interest is paid by an approved issuer under a registered security only if it is treated as paid in relation to a registered security under section 86I of the Stamp and Cheque Duties Act 1971. Defined in this Act: amount , approved issuer , associated person , business , company , fixed establishment , income , interest , life insurer , New Zealand , non-resident , non-resident passive income , NRWT , NRWT rules , pay , registered security , resident in New Zealand , transitional resident Compare: 2004 No 35 s NG 2(1)(b)(i), (ib) Section RF 12: substituted (with effect on 1 April 2008), on 6 October 2009, by section 536(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section RF 12(1)(a)(ii): replaced (with effect on 1 April 2010), on 7 May 2012 (applying for the 2010–11 and later income years), by section 131(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34). Section RF 12(3): amended (with effect on 1 April 2008), on 7 December 2009, by section 116 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).