The Taxation (Tax Administration and Remedial Matters) Bill was passed on August 17, 2011. The Bill introduces two new categories of portfolio investment entity (“PIE”), “foreign investment zero-rate PIEs” and “foreign investment variable-rate PIEs”, which aim to align the tax treatment of non-resident investors in PIEs with non-resident investors who invest directly in the underlying assets of PIEs.

A new tax bill, the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Bill, was introduced into Parliament on September 14, 2011. The Bill includes the following remedial amendments relating to international tax:

An increase of the minimum equity threshold for New Zealand banking groups for thin capitalisation purposes, from 4 % of their risk-weighted exposures to 6 %. The amendment will apply from April 1, 2012. The withholding tax rules will be amended to ensure that partly imputed dividends are not overtaxed.