Section YD 3 — Income Tax Act 2007: Country of residence of foreign companies

YD 3 Country of residence of foreign companies When this section applies (1) This section applies for the purposes of the international tax rules to determine the country in which a foreign company is treated as resident for an accounting period. Liability to income tax (2) The company is treated as resident in a country if, at any time during the accounting period, it is liable to income tax in the country because any of the following is located in the country— (a) its domicile: (b) its residence: (c) its place of management: (d) any other criterion of a similar nature. Further rule: first application (3) Subsection (4) applies if the application of subsection (2) for an accounting period means that— (a) the company is resident in 2 or more countries: (b) the company is not resident in any country. Applying New Zealand rules (4) The company is treated as resident in the country in which— (a) it is incorporated: (b) it has its head office: (c) it has its centre of management: (d) its directors, in their capacity as directors, exercise control of the company, even if the directors’ decision-making also occurs outside the country. Further rule: second application (5) The company is treated as resident in the country in which its centre of management is located for the accounting period if no 1 country of residence is identified under subsection (4). Final rule (6) The Commissioner must determine the country of residence if no 1 country of residence is identified under subsection (5). Defined in this Act: accounting period , Commissioner , company , director , foreign company , international tax rules , Compare: 2004 No 35 s OE 2(2)–(6) Section YD 3(4)(b): amended (with effect on 1 April 2008), on 6 October 2009, by section 572(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).