New Zealand Look-Through Companies

New Zealand Look-Through Companies are a very recent development in the New Zealand legislative system, offering the international investment industry the opportunity to operate an New Zealand resident entity with no New Zealand taxes.

Our New Zealand Look-Through Company application fee is very competitively priced, at only USD 50.00 for an already established trading New Zealand company.

New Zealand Look-Through Companies (LTC) were first announced in May 2010, during the government’s budgetary plan release. It was originally stated that the new LTCs would be used to address the issue of loss attributions in the real estate investment sector, but provisions were written into the legislations which allowed for new tax planning opportunities for international investors and business people.

Look-Through companies are a fiscally “pass-through” entity, meaning that they have the ability to pass-through incomes to their owners. In essence this means that the LTC is not taxed at a company level, and all of its profits “flow” to its shareholders. The shareholders themselves are responsible for declaring their incomes on their respective tax returns, and are liable for any taxes arising in their jurisdictions. International (non-New Zealand resident) shareholders will not face a New Zealand personal income tax liability on profits distributed (allocated) from the LTC, derived from the business activities of the company conducted outside of New Zealand.

In essence, a New Zealand LTC is a regular New Zealand Limited Liability Company, which has opted to pass-through all of its incomes to the shareholders, and has completed the necessary registration to do so with the Inland Revenue Department. Already trading companies and newly formed companies are both able to elect to become a New Zealand LTC. Currently the Inland Revenue Department requires 3 to 6 weeks to process the LTC election application.

We are able to offer assistance in incorporating a new company, applying for its LTC status, and providing the necessary ongoing accounting and taxation services needed to upkeep the company’s good standing. We are also happy to work with existing companies, whether they are already trading, or have been declaring themselves as non-active.

For more information about Look Through Companies check our information library, or contact us. To order your Look-Through Company please use the form provided on the right side of this page.