New Zealand is located in the Pacific Ocean on the southeast coast of Australia. The population of New Zealand is approximately 4.3 million people. Over the years New Zealand has developed into a country which helps clients tax advantage of international tax planning. New Zealand has a very well developed economy. The country depends mainly on free trade with its main export industries being agriculture, forestry and fishing. Tourism also makes a significant contribution to ht economy of the island nation.
Although New Zealand is said not to be a tax haven there are certain features which make people associate the jurisdiction with tax havens. The fact that the country has offshore services which includes offshore business entities and offshore trust formation tend to qualify New Zealand as a tax haven.
As a tax haven New Zealand has a business structure in place which allows clients to save on corporate and income taxes which are levied on corporations. The New Zealand limited partnership company can be structured to operate as an offshore business entity. An offshore corporation incorporated in New Zealand pays no local taxes if all its earnings are accumulated outside of the country. A New Zealand need not have partners who are citizens of the country.
New Zealand as a tax haven has certain laws which in common with some of the world top tax havens. For example the names and information of the limited partners in a limited partnership is not made public hence providing privacy for these individuals. Privacy is one of the basic characteristics of every tax haven. The Limited Partnership act of New Zealand does not obligate limited partnership companies to file annual audits with the tax authority in the tax haven. The laws obligate the limited partnership top prepare its audits but they do not have to be made public information.
In the jurisdiction of New Zealand a Special Purpose Company can be formed which can be structured to operate as an offshore company. A New Zealand is a company which acts as a trustee for a non resident New Zealand Company. This type of company will pay no taxes on income gained outside of the jurisdiction. A New Zealand Company is free to operate bank accounts and do business anywhere in the world.
Another entity commonly found in tax haven and also available in New Zealand is a New Zealand offshore trust company. The jurisdiction of New Zealand has a very good reputation for having a very good economy and political stability. This makes the country one of the best offshore jurisdictions to own an offshore trust in. The New Zealand offshore trust was first introduced in 1988 and is widely used as offshore vehicles. There are many benefits to opening an offshore trust in New Zealand. Offshore trusts are not taxed on income earned outside of the country.
To the residents of many of the worlds more developed countries New Zealand may seem to be a tax haven for the simple reason that the jurisdiction has very low tax rate compared to other countries of the world. The government authorities in the jurisdiction have lowered the corporate tax rate from 33% to 30% increasing the country’s ability to competitive with other countries. The low corporate tax rate in New Zealand makes the country very attractive to business investors. Non residents of New Zealand mat find their taxation system very appealing. Non residents to the country pay no taxes on foreign sourced income. These persons will only pay taxes on income earned in New Zealand.
New Zealand as a tax haven has no capital gains tax for both individual and corporations. In addition the country has signed double tax treaties with many countries including Australia, the United States of America, Canada, Singapore, Austria, South Africa, China, France and many other nations. What this does is remove many tax impediments and prevents investors from paying double tax.
As a tax haven New Zealand also offers offshore banking for corporations and individuals. Though not very popular New Zealand offshore banking has banking secrecy laws in place to protect the information which is regarded as private in offshore bank accounts in the tax haven.
New Zealand is one of the safest places to consider when investing abroad. The country has stable political and economical systems. The jurisdiction although it offers offshore services and advantages has not been targeted or black listed as a harmful tax haven. The laws which govern offshore entities in New Zealand are very modern and are up to par with its more developed offshore counterparts. The assets placed in New Zealand offshore entities are well protect by New Zealand laws. The tax haven of New Zealand is very helpful for persons who are considering reducing their tax liabilities.