what is look through status for a new zealand company?
TRANSCRIPT
TAX AND CORPORATE NEWS Latest news and information about tax and corporate legislations in New Zealand
What is Look Through Status for a New Zealand Company?
Look Through Status for a New Zealand Company can be granted by the New Zealand
Inland Revenue Department, and will mean that the entity is not charged taxation at a
corporate level in New Zealand.
The Look Through Status which can be bestowed on New Zealand companies is also
sometimes referred to as "pass through status" or "tax transparency".
Companies with the Look Through Status are not seen as having raised their own profits
and expenses, and the New Zealand Inland Revenue Department will regard the
operations of the company as being carried out by the shareholders personally.
Since the New Zealand company is not deemed to have raised its own profits, it cannot
be held liable for corporate taxes.
The distribution of profits made to the shareholders of the New Zealand Look Through
Company are also not taxed at a corporate or personal level in New Zealand, if the
shareholders are non-New Zealand residents and the incomes are raised through
activities outside of New Zealand.
Look Through Status can be granted to New Zealand companies after an application is
made to the New Zealand Inland Revenue Department. In order for a company to obtain
Look Through Status it must first show that there are no more than five shareholders
and that each shareholder is an individual. The Inland Revenue Department will need to
see a shareholder resolution showing that each shareholder has agreed for the company
to apply for Look Through Status and that the company currently meets all the
conditions required for Look Through Status.
Once granted, the Look Through Status will apply until the company chooses to drop the
status or the company no longer meets the conditions for Look Through Status.
The Look Through Status will not affect the operations of the company and will not
impose any extra filing requirements on the company.
Despite a common misconception, Look Through Status will not change the name of the
company nor its description on the publically accessible register of New Zealand
companies.
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
+64 7 8080 444
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