Announcements
PUBLISHED 22 February 2005

Foreign venture capital exemption extended

The government will introduce legislation to ensure that non-residents who invest into New Zealand companies alongside the New Zealand Venture Investment Fund will be exempt from tax on the profits when they later sell their shares in the companies. The change will be included in the next taxation bill. For more information see the government's media statement.


Hon Dr Michael Cullen
Minister of Revenue

MEDIA STATEMENT

Impediment to venture capital investment lifted

Non-residents who invest into New Zealand companies alongside the New Zealand Venture Investment Fund will be exempt from tax on the profits when they later sell their shares in those companies under changes planned by the government.

Revenue Minister Michael Cullen said that a cornerstone of the government's Growth and Innovation Framework was that the tax system should not act as an impediment to New Zealand enterprises getting the capital they need to grow.

"The change will complement the venture capital tax reforms enacted last year to remove tax barriers to New Zealand companies attracting private equity and venture capital from institutional investors in specific countries.

"The exemption will be included in the next taxation bill and will be limited to non-residents who sell shares in New Zealand companies into which the Venture Investment fund has invested, or committed to invest on or before 31 March 2008," Dr Cullen said.

Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail: [email protected]
Technical inquiries to Helen McDonald [tax advisor, Dr Cullen’s office] 471-9728