New Zealand Limited Partnerships
OVERVIEW
New Zealand Limited Partnerships are separate legal entities in law but are disregarded for tax purposes. Partners have limited liability as long as they do not participate in the management of the Limited Partnership. Management of the Limited Partnership is conducted by the general partner; CEE Investments Limited. Limited Partnerships are an efficient and effective structure in a range of circumstances. They are also recognised internationally and are often preferred by non-New Zealand resident investors. TAXATION Our managed funds and SPV's that are structured as Limited Partnerships are disregarded for tax purposes. This means that for tax purposes a share of the Limited Partnership’s net taxable income is allocated to you based on your limited partnership interest. The Limited Partnership is not a taxpayer. Instead, you will be responsible for your own tax on your share of the Limited Partnership’s income. CEE Investments Limited, the General Partner, will send you an annual limited partner tax statement at the end of each financial year which will summarise your share of the Limited Partnership’s gross income, expenses, and net taxable income. You benefit directly from the tax deductions of our managed funds and SPVs that are structered as Limited Partnerships, including tax depreciation and unrestricted interest deductions. New Zealand does not generally tax capital gains on commercial real estate investments. The 10-year bright-line test that applies to residential property investment does not apply to commercial property. Gains realised on the sale of real estate investments are tax free if the investment was made for the purpose of deriving rental income and long-term capital growth. There are a number of specific tax rules which treat certain capital gains as income. For example, there are tax rules that apply to speculators, land developers, dealers and investors who purchase property with the intention of selling it. These rules should not apply to our managed funds and SPVs which if they acquire real estate, then they do so for the purpose of deriving rental income and long- term capital growth. ADVANTAGES In summary, Limited Partnerships provide a number of advantages to investors, including: 1) Limited liability for limited partners 2) Public annonymity of limited partners 3) Whilst a separate legal entity, it is disregarded for tax purposes 4) CEE Investments Limited as General Partner calculates your share of the Limited Partnership’s net income as per the units you hold. 5) You retain control over your taxes, including the payment of tax at your applicable tax rate - allowing scope for tax optimisation specific to your investment vehicle. 6) You benefit directly from the tax deductions of our managed funds or SPVs, including tax depreciation. This means that your taxable income may be less than your partnership distributions. 7) Capital gains realised by our managed funds or SPVs may be distributed to investors tax-free.
New Zealand Limited Partnerships are separate legal entities in law but are disregarded for tax purposes. Partners have limited liability as long as they do not participate in the management of the Limited Partnership. Management of the Limited Partnership is conducted by the general partner; CEE Investments Limited. Limited Partnerships are an efficient and effective structure in a range of circumstances. They are also recognised internationally and are often preferred by non-New Zealand resident investors. TAXATION Our managed funds and SPV's that are structured as Limited Partnerships are disregarded for tax purposes. This means that for tax purposes a share of the Limited Partnership’s net taxable income is allocated to you based on your limited partnership interest. The Limited Partnership is not a taxpayer. Instead, you will be responsible for your own tax on your share of the Limited Partnership’s income. CEE Investments Limited, the General Partner, will send you an annual limited partner tax statement at the end of each financial year which will summarise your share of the Limited Partnership’s gross income, expenses, and net taxable income. You benefit directly from the tax deductions of our managed funds and SPVs that are structered as Limited Partnerships, including tax depreciation and unrestricted interest deductions. New Zealand does not generally tax capital gains on commercial real estate investments. The 10-year bright-line test that applies to residential property investment does not apply to commercial property. Gains realised on the sale of real estate investments are tax free if the investment was made for the purpose of deriving rental income and long-term capital growth. There are a number of specific tax rules which treat certain capital gains as income. For example, there are tax rules that apply to speculators, land developers, dealers and investors who purchase property with the intention of selling it. These rules should not apply to our managed funds and SPVs which if they acquire real estate, then they do so for the purpose of deriving rental income and long- term capital growth. ADVANTAGES In summary, Limited Partnerships provide a number of advantages to investors, including: 1) Limited liability for limited partners 2) Public annonymity of limited partners 3) Whilst a separate legal entity, it is disregarded for tax purposes 4) CEE Investments Limited as General Partner calculates your share of the Limited Partnership’s net income as per the units you hold. 5) You retain control over your taxes, including the payment of tax at your applicable tax rate - allowing scope for tax optimisation specific to your investment vehicle. 6) You benefit directly from the tax deductions of our managed funds or SPVs, including tax depreciation. This means that your taxable income may be less than your partnership distributions. 7) Capital gains realised by our managed funds or SPVs may be distributed to investors tax-free.