The new Limited Partnership Act 2008 came into force on 2 May 2008, which provides New Zealand with an internationally recognised regime to underpin investment in the venture capital and private equity industry.  This welcome legislation is the result of 5 years lobbying and development across our industry.  A summary of key aspects of the Act can be viewed on a dedicated section of the Companies Office website.

For the introduction of the kiwi saver scheme in April 07, the NZ Government is changing portfolio investment rules – making investment in NZ and Australian shares free of tax on gains, but tightening up tax of gains on shares elsewhere.  These offshore share value gains will all be taxed annually on an imputed unrealised return of 5% p a.  We have negotiated a carve out for the venture capital industry, and for other investors in young companies which move their incorporation from NZ to raise more money so they can grow internationally.  See pages 12 & 13 of the IRD publication on Offshore Investment Tax.