"Pacific Switzerland" actually loses the status of offshore

Under the influence of global trends in counteracting tax crimes and money laundering, New Zealand introduced new rules for the Look-Trough Company regime ("viewed" companies, LTC).

LTC exists in New Zealand since 2011. Its peculiarity is that LTC does not pay local (fairly high) taxes. The company's profit is considered to be the direct income of its shareholders who declare it in the state of their tax residency and there they also pay income tax.

To obtain LTC status it was necessary to comply with the following requirements:
 LTC shall not conduct business in New Zealand;
 The source of income must be outside the country;
 The maximum number of shareholders is 5;
 Shareholders are only individuals or trustees of trusts;
 All shares of the company are voting and give equal rights to all shareholders.

At the same time, the authorities have not abolished the LTC regime since July 2017, but, as already noted, additional conditions are being introduced for the transition to it:

 If more than 50% of LTC is owned by non-residents of New Zealand, then the company's revenue from sources outside New Zealand can not be more than $ 10,000 or 20% of the company's annual income.

Thus, strict restrictions have led to the fact that the LTC regime has become attractive only for local businesses and foreign companies that receive income in the country.

A source: http://www.legislation.govt.nz/act/public/2007/0097/latest/DLM1512301.html