Section RF 12B — Income Tax Act 2007: Interest derived jointly with residents

RF 12B Interest derived jointly with residents When payment derived jointly with resident (1) If a person makes a payment of non-resident passive income that consists of interest derived by 2 or more persons jointly and at least 1 person deriving the interest is a New Zealand resident, the amount of tax for the payment is calculated using the formula— (tax rate × (interest paid + foreign withholding tax)) − foreign withholding tax. Definition of items in formula (2) In the formula,— (a) tax rate is the basic rate set out in schedule 1, part D, clause 3 or 4 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits): (b) interest paid is the amount of interest paid before the amount of tax is determined: (c) foreign withholding tax is the amount of foreign withholding tax paid or payable on the amount of interest paid. Treatment as filing taxpayer (3) For the purposes of this section, the New Zealand resident referred to in subsection (1) is treated as a filing taxpayer. Defined in this Act: amount , amount of tax , filing taxpayer , foreign withholding tax , interest , New Zealand resident , non-resident passive income , pay Compare: 2004 No 35 s NG 2(1)(ab) Section RF 12B: inserted (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).