Investing into a US limited liability company – New Zealand tax consequences

These five Public Rulings and the accompanying commentary will be a re-issue of Br Pub 20/01 – 20/05 (the 2020 Rulings). 

The item sets out the income tax treatment and availability of foreign tax credits or other forms of double taxation relief for New Zealand investors in a United States limited liability company (US LLC) that is taxed on a fiscally transparent basis as a partnership in the US, but as a foreign company in New Zealand.  The Rulings demonstrate the respective tax treatments where the interest in the US LLC is classified as under the foreign investment fund (FIF) threshold, a FIF or a controlled foreign company (CFC); where different FIF methods are used and where there is a non-attributing active FIF or CFC.  

The Commissioner’s conclusions remain unchanged from when the 2020 Rulings were published.

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