ILN: ESTABLISHING A BUSINESS ENTITY: AN INTERNATIONAL GUIDE

[ESTABLISHING A BUSINESS ENTITY IN NEW ZEALAND] 368

uncertainties relating to trust law from an overseas perspective.

having a corporate trustee).

Tax : The trust is not a separate entity for tax

Tax : Tax losses cannot be passed through to beneficiaries (because they remain at the trust level).

purposes, and the trust’s profit and income is therefore either taxed at a flat rate of 33% on income deemed trustee income or at a rated based on the beneficiary’s tax status on income deemed beneficiary income. Tax losses remain at the trust level and can be utilised or carried forward by the trust. No RWT/NRWT payable. Loss limitation rule does not apply. The trust can register for GST.

ILN Corporate Group – Establishing a Business Entity Series

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