On 16 May 2013, the Minister of Finance presented the government's 2013-14 Budget. The key tax features are summarized below.
Thin capitalization rules
The current thin capitalization ownership threshold to trigger the restriction on interest deductibility under the thin capitalization rules (viz. where a single non-resident owns 50% or more of a New Zealand investment) is to be expanded to capture New Zealand entities owned by foreign private equity investors. The thin capitaliz…