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Te āhei atu hei kamupene hanganga taunaha tāpui Eligibility to be a look-through company


To become, and remain, a look-through company (LTC), a company must meet the following criteria for the whole of each income year:

  • It must be a company but cannot be a flat-owning company.
  • It must be a New Zealand tax resident and not treated as a non-resident under any double tax agreement.
  • Its owners must have only look-through interests.
  • It must have five or fewer look-through counted owners, who must be either natural persons or trustees (including corporate trustees).
  • It must not have an owner which is a tax charity or a Māori authority, unless the tax charity or Māori authority are grandparented.
  • If the total ownership interests in the LTC are more than 50% held by foreign LTC holders, the LTC must not have a foreign-sourced amount for the year that is more than $10,000 or 20% of the LTC’s gross income for the year (whichever is greater).

If an LTC fails to meet these criteria it automatically loses its LTC status.