Other exemptions from the FIF rules

2012 Act covers exemptions to the FIF rules under certain circumstances.

Sections EX 32, EX 33 and EX 36 to 43 of the Income Tax Act 2007

In addition to the exclusions discussed earlier, a person will not have an attributing interest in a FIF if their interest in the FIF qualifies for one of the following exemptions:

  • section EX 32 (certain Australian unit trusts);
  • section EX 33 (Australian-regulated superannuation schemes);
  • sections EX 36, 37 or 37B (various exemptions for venture capital companies);
  • section EX 38 (Exemption for employee share purchase schemes of a grey list company);
  • EX 39 (Exemption for grey list company with numerous NZ shareholders);
  • EX 40 (Foreign exchange control exemption);
  • EX 41 (Income interest of a non-resident or transitional resident);
  • EX 42 (New Resident's accrued superannuation entitlement exemption); or
  • EX 43 (Non-resident's pension or annuity exemption).

These exemptions are not amended by this Act.

Note that if a FIF qualifies for one of these exemptions the normal domestic tax treatment applies. This generally includes taxation of any dividend and taxation of gains on sale if the FIF interest is held on revenue account.