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Private Equity / Venture Capital Paper

04 June 2009

On 15 May 2009, the New Zealand Private Equity and Venture Capital Association (NZVCA) released a report highlighting suggested changes which would improve the New Zealand regulatory environment for venture capital and private equity investment. The report’s recommendations, arrived at after extensive consultation, are wide-ranging.

The key recommendations are to:

  • exempt from tax profits made by private equity and venture capital companies from the sale of shares in New Zealand resident companies
  • further adjust New Zealand’s tax regime in several ways, including by eliminating New Zealand tax on off-shore income distributed to non-resident investors, and removing tax on capital gains distributed to non-resident investors in a liquidation
  • overhaul the Overseas Investment Act, including by raising the threshold for its application and allowing more exemptions
  • implement full mutual recognition with Australia of imputation and franking credits, and
  • make technical adjustments to New Zealand securities and limited partnerships laws to better suit the commercial context of private equity and venture capital funds.

For more information contact Nick Wells (Partner, Chapman Tripp) on +64 9 357 9004 or nick.wells@chapmantripp.com or Colin McKinnon (Executive Director, NZVCA) on +64 9 302 5218 or colin.mckinnon@nzvca.co.nz.


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