Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Income from equity

CD 31: Flat-owning companies

You could also call this:

“Special rules for companies that let shareholders live in their properties”

If you own shares in a flat-owning company, you might get to use a specific house or flat that the company owns. This is not considered a dividend.

A flat-owning company is a special kind of company. Its rules say that if you’re a shareholder, you get to use a specific house or flat in New Zealand that the company owns. These companies usually only own houses or flats for their shareholders to use, and they keep some money to pay for running the company.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512643.

Topics:
Money and consumer rights > Taxes
Previous

CD 30: Transfer by unit trust of legal interest after beneficial interest vests, or

“Unit trust transfers legal ownership without additional tax on previously taxed dividends”

Next

CD 32: Employee benefits, or

“Benefits from employers that aren't counted as dividends”

Part C Income
Income from equity

CD 31Flat-owning companies

  1. If a flat-owning company makes residential property available to a person, that is not a dividend.

  2. In this section, flat-owning company means a company—

  3. whose constitution provides that every registered shareholder is entitled to the use of a specific residential property in New Zealand owned by the company; and
    1. whose only significant assets are residential properties available for use by specific shareholders and funds reserved for meeting the company’s costs.

      Compare