Te kamupene māraurau Qualifying company

Qualifying companies have tax rules that aim to treat the company and its shareholders as one entity.

Tax summary

No new elections can be made to become a qualifying company. Only companies that were qualifying companies before their income year started on or after 1 April 2011 can still be qualifying companies.

Qualifying companies have certain tax requirements that relate only to them:

• Only dividends with imputation credits attached are taxable to the shareholders.
• Capital gains can be distributed tax free without winding up the company.
• Interest that shareholders have paid to acquire shares is not fully deductible.
• Qualifying companies that make a profit can only receive a loss offset and only make a subvention payment to another qualifying company.