Criteria to qualify for zero-rating
To qualify for the zero rate on interest payments all the following must be met:
- represented in New Zealand dollars
- offered to the public in terms of section 3 of the Securities Act 1978
- not be issued as a private placement
- not be an asset-backed security
- be conducted through a registry and paying agent with a fixed establishment in New Zealand
- be listed on the stock exchange or satisfy a widely held test
- be registered with us.
Meeting the widely-held test
To meet the widely-held test a security must:
- be held by 100 separate persons who the issuer could reasonably assume are not associated at the time the test applies
- have no person or group of associated persons holding a 10% or greater interest at the time of applying the test.