new zealand tax free entities

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TAX AND CORPORATE NEWS Latest news and information about tax and corporate legislations in New Zealand New Zealand Tax Free Entities Some New Zealand business entities do not attract New Zealand corporate tax obligations when used by non-residents for business outside of New Zealand. The entities which can be used without drawing a New Zealand Tax obligation are: New Zealand Look Through Companies New Zealand Limited Partnerships New Zealand Look Through Company New Zealand Look Through Companies are standard New Zealand Limited Liability Companies which have been granted Look Through status by the New Zealand Inland Revenue Department. After a company obtains Look Through Status it is no longer considered to be raising its own profits and expenses, as these are now regarded as being raised personally by the Shareholders of the company. As the Look Through Company is not deemed to have raised its own profits, it is not liable to face corporate tax liabilities in New Zealand. The profits of the New Zealand Look Through Company are distributed to the shareholders at the same proportion as their own capital contributions into the entity. If the shareholders are non-residents they distributions made by the Look Through Company will not face tax obligations, as long as the profits arose through activities conducted outside of New Zealand. New Zealand Look Through Companies are an ideal solution for international investors and entrepreneurs looking for an entity which can be set up quickly and which can be run like a standard company. Contact us or visit our New Zealand Look Through Company registration page today to establish your New Zealand LTC. New Zealand Limited Partnerships New Zealand Limited Partnerships are made up of at least two separate entities which are working in unison toward a joint goal or business plan. The General Partner in the New Zealand Limited Partnership is responsible for proving the day to day management of the business and assets of the entity, while the Limited Partner provides the capital backing for the endeavor. The New Zealand Limited Partnership is a tax transparent entity and is not regarded as having its own profits, and all the raised incomes are distributed between the Partners. KIRILL KRUGER Development Manager at Abaconda Management Group , Director of AMG Business Development. Kirill Kruger is a young but experienced financial consultant, with a specialization in international and New Zealand taxation research, management and planning. Being a successful entrepreneur he has also authored advanced studies in the field of financial academics, and regularly writes reports on current affairs and developments in international and New Zealand finance, taxation and management. www.businesscompass.co.nz [email protected] +64 7 8080 444 © AMG Business Development

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Page 1: New Zealand Tax Free Entities

TAX AND CORPORATE NEWS Latest news and information about tax and corporate legislations in New Zealand

New Zealand Tax Free Entities

Some New Zealand business entities do not attract New Zealand corporate tax obligations when used by non-residents for business outside of New Zealand. The entities which can be used without drawing a New Zealand Tax obligation are:

New Zealand Look Through Companies

New Zealand Limited Partnerships

New Zealand Look Through Company New Zealand Look Through Companies are standard New Zealand Limited Liability Companies which have been granted Look Through status by the New Zealand Inland Revenue Department. After a company obtains Look Through Status it is no longer considered to be raising its own profits and expenses, as these are now regarded as being raised personally by the Shareholders of the company. As the Look Through Company is not deemed to have raised its own profits, it is not liable to face corporate tax liabilities in New Zealand. The profits of the New Zealand Look Through Company are distributed to the shareholders at the same proportion as their own capital contributions into the entity. If the shareholders are non-residents they distributions made by the Look Through Company will not face tax obligations, as long as the profits arose through activities conducted outside of New Zealand. New Zealand Look Through Companies are an ideal solution for international investors and entrepreneurs looking for an entity which can be set up quickly and which can be run like a standard company. Contact us or visit our New Zealand Look Through Company registration page today to establish your New Zealand LTC. New Zealand Limited Partnerships New Zealand Limited Partnerships are made up of at least two separate entities which are working in unison toward a joint goal or business plan. The General Partner in the New Zealand Limited Partnership is responsible for proving the day to day management of the business and assets of the entity, while the Limited Partner provides the capital backing for the endeavor. The New Zealand Limited Partnership is a tax transparent entity and is not regarded as having its own profits, and all the raised incomes are distributed between the Partners.

KIRILL KRUGER

Development Manager at

Abaconda Management

Group , Director of AMG

Business Development.

Kirill Kruger is a young but

experienced financial

consultant, with a

specialization in

international and New

Zealand taxation research,

management and planning.

Being a successful

entrepreneur he has also

authored advanced studies

in the field of financial

academics, and regularly

writes reports on current

affairs and developments in

international and New

Zealand finance, taxation

and management.

www.businesscompass.co.nz

[email protected]

+64 7 8080 444

© AMG Business Development

Page 2: New Zealand Tax Free Entities

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If the Partners are non-resident entities or individuals who conduct business overseas they will not be liable to face tax obligations on their distributions. The General partner in the New Zealand Limited Partnership will carry out business on behalf of the Partnership, and in some cases it may be beneficial to the entire operation if the Partner is a New Zealand company. It is possible for this Company to operate with no corporate tax obligations in New Zealand if it does not make any capital contributions into the entity and does not receive any distributions of profits.