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New Zealand Look Through Companies

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                                 New Zealand Look-Through Companies
                                 Essential guide for international investors

                                 An LTC is a New Zealand company which has elected to pass-through its incomes to
                                 shareholders, and is registered as such with the New Zealand Inland Revenue
                                 Department. For the most part, an LTC is a regular New Zealand Limited Liability
                                 Company. However, under New Zealand regulations the LTC will also be required to:

                                        be a New Zealand resident for the purposes of tax; and
                                        have five or less look-through counted owners; and
                                        issue all of its shares with equal voting and participation rights; and
KIRILL KRUGER                           have only individuals or trustees shareholders.

Development Manager at
                                  There are no restrictions on how, when or where may conduct its businesses, outside of
Abaconda Management              the obvious adherence to the laws of the jurisdiction it operates. In effect, this means that
Group , Director of AMG          LTCs are seen in the same light as New Zealand Limited Liability companies, which are
Business Development.            repeatedly used for international businesses and tax planning.

                                 LTC are a pass-through entity, meaning that the company itself does not face income
                                 taxation, and all of its profits are passed through to the shareholders, in proportion to the
Kirill Kruger is a young but
                                 number of shares they hold. As the incomes or losses are distributed, they are added to
experienced financial
consultant, with a               the shareholder’s personal income, and taxed accordingly.
specialization in
international and New            As a general conclusion, for the purposes of international tax planning, the shareholders
Zealand taxation research,       of New Zealand LTCs are not liable to face New Zealand tax obligations on incomes
management and planning.         derived overseas and passed-through the New Zealand LTC (Income Tax Act 2007 (BD1,
Being a successful               5,c)).
entrepreneur he has also
authored advanced studies
in the field of financial        For further details on Look Through Companies and their uses, have a look through our
academics, and regularly         full brochure: http://www.abaconda.info/2011/04/look-through-company/
writes reports on current
affairs and developments in
international and New
Zealand finance, taxation
and management.


www.abaconda.info
info@abaconda.info
+64 7 8080 444



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Description: New Zealand Look Through Companies are used by international investors and entrepreneurs as a vehicle for multinational business.