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On
11th March 2008 the new Limited Partnerships
Act became law. This updates the tax rules on
general partnerships and also introduces new
regulatory rules for Limited Partnerships that
will make it easier for New Zealand firms to
have access to venture and investment capital
and compete internationally. Limited partnerships
are widely used internationally as a vehicle
for investing into another country, particularly
in relation to private equity and venture capital
investment. New Zealand law now provides for
them.
The
new legislation removes barriers to this investment
into New Zealand in two ways - by providing
separate legal entity status for limited partnerships
and by making it possible for foreign investors
to have their gains and losses recognised for
tax purposes in their own countries.
As
an additional complementary measure, the new
legislation modernises and clarifies the tax
rules on partnerships generally, which will
provide greater clarity and certainty for all
partnerships, large or small.
Click
here to read more about New Limited Partnerships
on NZ Securities |
