Is the New Zealand LTC an alternative to the traditional offshore companies?

Countries offering beneficial investment opportunities for non-resident companies include New Zealand, USA and Cayman Islands. Although not widely known for its advantageous tax system, New Zealand has recently propelled itself into a favorable tax category with the introduction of the Look Through Company regime, enforced in April 2011. This new system allows New Zealand to offer a range of sophisticated asset protection and tax planning products that in turn, develop the reputation of the country to be regarded as a jurisdiction of low tax and discretion. Similar to the Delaware LLC, the non-resident Look Through Company is practical as a commercial trading entity and provides the necessary vehicle for zero taxation on a company's worldwide income. A non-resident company refers to that which is not resident for tax purposes and does not trade or derive its income from activity within New Zealand. A Look Through Company, commonly abbreviated to LTC, effectively looks to its shareholders for the purpose of taxation, ensuring the company pays 0% corporate tax. So its a bit like the LLP and is transparent for tax purposes. The shareholders will only be liable for income tax on the extraction of the company's profits and the income tax payable will be that of their country of residence. Therefore, if they reside in a low or zero income tax state, they will have a minimal tax liability. Setting up a LTC is quick and easy, with high levels of privacy and confidentiality upheld at all times. In addition to a 0% corporate tax rate for non-resident LTCs, New Zealand also boasts low corruption indexes, no foreign exchange controls and no capital gains taxes.