Tax Planning in New Zealand |
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Healy Consultants New Zealand tax planning services are tailored to meet your precise needs. When undertaking any tax planning in New Zealand Healy Consultants advises that you consider: |
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| 1. | When tax planning in New Zealand, it is essential to acknowledge that non-New Zealand residents are liable to pay New Zealand tax on income derived in New Zealand.
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| 2. | When tax planning in New Zealand, the client must consider that New Zealand Companies must register for Goods and Services Tax (GST), which is levied at 15% on the goods and services they supply. Once the company begins activity it, thereafter, claims a GST credit from suppliers.
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| 3. | When tax planning in New Zealand, it is important to note that the country's tax year runs from 1 April to 31 March.
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| 4. | New Zealand has signed Double Taxation Treaties with 35 countries, which offers significant benefits when tax planning in New Zealand. New Zealand's Double Tax Treaty network is designed to include countries with which New Zealand has significant levels of trade and investment, and which have tax characteristics that can be relieved by the agreements. For further information on this aspect of tax planning in New Zealand, kindly refer to the New Zealand Inland Revenue website. |
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| 5. | New Zealand has a progressive tax bracket personal income tax system. The highest personal income tax rate in New Zealand is 33% (45% if non-notification applies), and is applicable for income over NZ$70,000 (US$55,300) per annum. For further information kindly refer to the Inland Revenue website. |
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| 6. | There is no capital gains tax imposed after incorporating in New Zealand. |
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| 7. | Capitalisation regulations discourage foreign companies from using excessive debt to avoid New Zealand taxes. |
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| 8. | When tax planning in New Zealand, there are a number of non-deductible expenses, including: |
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| i) | If the Company borrows money, the capital part of the loan repayments is not a deductible expense; |
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| ii) | Income tax that the business pays is not a deductible expense, and tax refunds are not taxable income; |
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| iii) | Legal fees incurred in setting up a business; |
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| iv) | Money introduced into the business is not taxable income; |
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| v) | The cost of plant and machinery; |
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| vi) | Improvements to equipment apart from repairs and maintenance; |
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| vii) | Capital expenses. |
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Contact Us |
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For more information on tax planning in New Zealand, e-mail us at email@healyconsultants.com or telephone us at (+65) 6735 0120. |
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Back to New Zealand Company Formation page. |
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Buy Healy Consultants' Asia Business Set Up book, to order call +65 6735 0120 or e-mail email@healyconsultants.com
