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For businesses and employers Ngā pakihi me ngā kaiwhakawhiwhi mahi

Filing a look-through company tax return

Returns an LTC must file

Unless a look-through company (LTC) has completed a Non-active company declaration (IR433) form and is a company with non-active status it must file a:

The LTC itself doesn't pay income tax, but each look-through counted owner must file a separate income tax return showing their proportion of the LTC's income and deductions as shown on the IR7L. The type of return filed will depend on the entity of the owner, ie an:

Taxes that the owner is liable for

An owner in an LTC will be liable for any tax payable on their LTC income as it forms part of their taxable income. They'll also be allowed to offset any loss incurred by the LTC against other income, subject to the loss limitation rule in some circumstances. 

Income or losses from the business activity of an LTC will be treated as if it were business income or losses for the owner, and may cause the owner to be liable for ACC levies.

Income or losses from other sources, such as residential rental property or income from investments are also treated as if they were earned directly by the owner, and will be recorded in the appropriate keypoint(s) in their own income tax return

Rules that may relate to particular sources of income, such as business or investment losses being excluded from calculation of Working for Families Tax Credits and student loan repayments, will apply to income or losses attributed from an LTC.

See also