On 27 June 2018, New Zealand's Taxation (Neutralising Base Erosion and Profit Shifting) Act received royal assent. The main measures of the Act are summarized as follows:
Hybrid and Branch Mismatch Rules
Hybrid and branch mismatch rules are introduced in line with the OECD recommendations developed as part of BEPS Action 2. The rules address:
- Hybrid financial instruments;
- Disregarded hybrid payments;
- Structures producing double deductions;
- Reverse hybrids;
- Dual resident entities;
- Imp…