The Resource Application of the New Zealand-United States double tax agreement to "hybrid" entities

Application of the New Zealand-United States double tax agreement to "hybrid" entities

Label
Application of the New Zealand-United States double tax agreement to "hybrid" entities
Title
Application of the New Zealand-United States double tax agreement to "hybrid" entities
Creator
Subject
Language
eng
Summary
In 1983, New Zealand (NZ) and the United States (US) entered into a double tax agreement (DTA). New forms of business entities have been created (including the US limited liability company), and the proper treatment of such entities and their owners under the NZ-US DTA has been uncertain. In 2005, NZ and US entered into an agreement to clarify the application of their DTA to a "hybrid" entity, which is a business entity that is not subject to tax under the law of one country but subject to taxation under the law of the other country. This article discusses the 2005 agreement and includes, first, an overview of business entities permitted under US law, along with an overview of the US federal taxation of these business entities and their owners, second, a description of the US Treasury Department "check-the-box" regulations that permit many business organisations elective tax treatment for US federal income tax purposes (as either a not fiscally transparent taxable corporation, or a fiscally transparent non-taxable pass-through), and third, an analysis of hybrid entities, particularly the US limited liability company, under the NZ-US Double Taxation Agreement as modified by the 2005 agreement. The 2005 agreement brought some welcome certainty with respect to the US limited liability company with NZ-source income, but as discussed in this article, areas of uncertainty remain
Citation source
In: New Zealand journal of taxation law and policy. - Wellington. - Vol. 13 (2007),
http://library.link/vocab/creatorName
Lischer, H.J. (Jr.)
Language note
English
http://library.link/vocab/subjectName
  • tax treaty
  • hybrid entity
  • check-the-box regulations
  • limited liability company
Label
Application of the New Zealand-United States double tax agreement to "hybrid" entities
Instantiates
Publication
Label
Application of the New Zealand-United States double tax agreement to "hybrid" entities
Publication

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