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application of a foreign investor tax credit regime).

Losses
Generally, losses incurred by resident and non-resident taxpayers may be carried forward indefinitely
and offset against future taxable income from a New Zealand source. Corporate losses can be carried
forward indefinitely and offset against future profits provided that a certain level of shareholder
continuity, broadly at least 49%, is maintained. There is generally no “same business” test in relation to
loss carry-forward. Company losses may also, subject to certain requirements (including a requirement
that the companies have at least 66% commonality of ultimate shareholding), be utilised by offsetting
those losses against the income of other group companies.

SPECIAL TAX SITUATIONS
In New Zealand there are various regimes governing specialist entity types and taxation situations. These
include detailed rules governing:
ə Trusts
ə Unit trusts
ə Partnerships and joint ventures
ə Portfolio Investment Entities

ə International tax regimes in relation to:
– transfer pricing
– thin capitalisation
– foreign investor tax credits
– controlled foreign companies and foreign investment funds
ə Withholding taxes, including:
– resident withholding tax
– non-resident withholding tax, and a related approved issuer levy regime
– deductions from salary and wages
– non-resident contractors’ withholding tax.