Crown-owned entities not eligible for the RDTI
The following crown-owned entities, including associates and entities controlled by them, are not eligible for the RDTI:
- Crown Research Institutes (CRIs)
- Tertiary Education Organisations (TEOs) including foreign-owned TEOs
- District Health Boards (DHBs)
- Callaghan Innovation.
What’s an associate?
Entities are considered to be “associates” when they have a close relationship and common interest.
What does control mean?
The word control is not defined in tax law but could include:
- ownership of 50% or more of shares or voting interests in another entity
- control of appointments to an entity’s controlling board.
Control transfers through entities - for example, if ‘A Co’ controls ‘B Co’, and ‘B Co’ controls ‘C Co’, then ‘A Co’ is also considered to control ‘C Co’.