New Zealand: Tax legislation, closely held companies | KPMG | GLOBAL

New Zealand: Update on tax legislation, closely held companies

New Zealand: Tax legislation, closely held companies

Pending legislation in New Zealand would revise certain tax rules concerning closely held companies.

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The bill was reported back from the Finance and Expenditure Select Committee with recommendations that would:

  • Leave the “approved issuer levy” eligibility requirements unchanged
  • Propose to allow an “approved issuer levy” only if the New Zealand borrower or foreign lender are financial institutions or widely held companies and if interest payable to non-residents satisfied a threshold amount
  • Include an intention test for back-to-back loans
  • Revise the related-party debt remission rules

The legislation is pending final approval and enactment.

 

Read a November 2016 report [PDF 583 KB] prepared by the KPMG member firm in New Zealand: May Tax Bill reported back

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