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Ngā kaipupurihea o tētahi kamupene hanganga taunaha tāpui Shareholders of a look-through company

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Restrictions on shareholders in an LTC

  • Shareholders in a look-through company (LTC) must be either natural persons or trustees (including corporate trustees). An ordinary company cannot hold shares in an LTC but an LTC can hold shares in another LTC.
  • An LTC must have five or less “look-through counted owners” – the natural person beneficiaries of trustee shareholders or shareholding LTCs. Related shareholders may be counted as a single owner.
  • LTCs that are more than 50% owned by foreign LTC holders are subject to a foreign income restriction.

To find out more about who can become an LTC check out our guide.

ACC levies

  • If you do not play an active part in the LTC’s business you are a passive investor and shareholder. You will not pay ACC levies on income attributed to you from the LTC, including any LTC income attributed as beneficiary income through a trustee owner.
  • If you play an active part in generating the LTC’s income you are self-employed for ACC purposes so must pay ACC levies as a self-employed person. This will be invoiced by ACC.
  • If you receive salary or wages for your role as a working owner you are liable for ACC levies. The ACC earner’s premium will be deducted as part of the PAYE deducted from your salary or wages. The LTC will be invoiced by ACC for any levies on salary or wages paid to employees.
Look-through companies guide IR879 (PDF 168KB) Download form