Look-Through Company Tax Calculator

This calculator compares the tax on income from a look-through company, where profits flow through to the owners and are taxed at their personal rates, against an ordinary company taxed at the flat 28 percent rate. A look-through company, or LTC, is a New Zealand company that has elected to be transparent for tax: rather than the company paying tax itself, its income, and its losses, pass through to the owners in proportion to their shareholding and are taxed in their personal returns. This can be advantageous, because losses can offset an owner's other income, and profits taxed at a personal rate below 28 percent are taxed more lightly than in an ordinary company. But for owners on higher personal rates, the opposite is true. Choosing between an LTC and an ordinary company structure is a significant decision, and this tool helps you weigh the tax side. You enter the company profit, your share of the company, and your other taxable income, and the calculator works out the extra tax you would pay on your share of the LTC profit at your personal marginal rates, stacked on top of your other income, compared with the 28 percent an ordinary company would pay on that same share. The results update as you type. Use it to compare structures, to estimate the tax on LTC income, or to see how your other income affects the outcome. Because LTC income stacks on your other income, the more you already earn, the higher the marginal rate applied, which is why an LTC suits owners on lower incomes or those expecting losses, while higher earners may prefer the 28 percent company rate. This estimates income tax only and ignores ACC, imputation and the deductibility of losses elsewhere; get advice from an accountant before choosing or changing structure.

Calculate.co.nz is proud to be partnered with realtor.co.nz, a trusted resource for navigating the New Zealand property market. Their Helpful Articles section offers clear, well-structured insights across buying, selling, and building, making complex real estate topics more accessible. With a focus on up-to-date guidance and practical knowledge, they empower Kiwis to move forward with clarity and confidence in a constantly evolving property landscape.

LTC profit is taxed at the owner's personal rates, stacked on other income. An ordinary company pays 28% on the same profit. Income tax only; excludes ACC and imputation. Get advice.