Tax and accounting regulations

Summary of Requirements for a New Zealand Limited Liability Company:

General Information
Type of Company
Timescale to incorporate
Taxation
Double Tax Treaty Access
Limited Liability Company
2-3 working days. Original Corporate Documents to follow
Corporate Tax 28%
Yes. More than 35 countries have Double Tax Agreements with New Zealand
Directors
Minimum No. Required
Local Director Required
Publicly accessible information
Location of Meetings
1,Corporate Directors are not permitted
No
Yes, directors details are available on a public register
Anywhere
Shareholders
Minimum No. Required
Publicly accessible information
Location of Meetings
1, Corporate Shareholders are permitted
Yes
Anywhere
Company Secretary
Required
Local Secretary Required
Registered Office Required
No
N/A
Yes
Share Capital
Standard Currency
Minimum Authorised
Minimum Paid Up Capital
New Zealand Dollar (NZD)
1 NSD
There are no minimum capital requirements
Accounting & Compliance
Requirements to prepare Accounts Yes
Requirement for Audit
  • If over 25% of the shares of the company are owned by a non-resident, audited annual accounts must be filed in the New Zealand Companies Office.
  • This requirement does not apply where shares are held by a New Zealand nominee which holds the shares on behalf of an overseas shareholder.
Local Auditor Required Yes
Requirement to file Annual Return Yes. If no Annual Return is not filed by the due date the company risks being removed from the register.
Additional Information
GST The current rate of GST is 15%.
Companies must be registered for Goods and Service Tax (GST) if their turnover was more than 60,000 NZD in the last 12 months or is expected to exceed 60,000 NZD for the next 12 months.
Bank Account Opening Bank Accounts can be opened in a number of international banks in New Zealand. Please contact us for additional information.

Taxation for a Limited Liability Company:

Corporate Income Tax Rate:
  • Flat tax rate of 28%
  • A company resident in New Zealand is assessable on worldwide income whether derived from the New Zealand or elsewhere
  • A company not resident in New Zealand is liable only in respect of income derived from New Zealand (*Residency requirements for NZ LLC as below)
Capital Gains Tax Rate:
  • 0%
Withholding Tax: Dividends:

 

  • Dividends to a non-resident are subject to a 30% non-resident withholding tax to the extent not fully imputed. Fully imputed dividends are subject ti a 0% NRWT where the non-resident has a 10% or more voting interest in the company otherwise this will be 15%. Rates may be subject to further reduction under an applicable treaty.

Interest:

  • Interest paid to a non-resident is subject to a 15% NRWT.

Royalties:

  • Royalties paid to a non-resident are subject to a 15% NRWT.
Losses:
  • May be carried forward indefinitely subject to a 49% continuity of ultimate shareholder requirement.

Take the next step, we are here to help.

Register a New Zealand company.
Open a New Zealand bank account.

  Resources:

European Commission publishes tax avoidance disclosure directive

European Commission publishes tax avoidance disclosure directive

The EC (European Commission) has published its draft legislation compelling financial service providers or intermediaries to disclose any international tax planning schemes they have encouraged, enabled or assisted in any way.

OECD publishes compliance review for all non-compliant jurisdictions

OECD publishes compliance review for all non-compliant jurisdictions

The OECDs global tax transparency initiative was launched last year in April 2016, with the purpose of encouraging every jurisdiction across the world to commit to implementation of a CRS (Common Reporting Standard) for automatic exchange of information by 2018, and to sign the Multilateral Convention on the exchanging of tax data. A forum on behalf of the OECD has released the results of its review for jurisdictions it considers to be non-compliant.

EU Parliament Committee release findings & recommendations for current offshore taxation measures

EU Parliament Committee release findings & recommendations for current offshore taxation measures

A formal enquiry into the Panamanian law firm Mossack Fonseca has been launched by the European Parliament's Committee, which found gaps in beneficial ownership transparency for trusts and fiduciaries and didn’t meet the EU standard.

2017 G20 summit: Enforcement of taxation highest priority

2017 G20 summit: Enforcement of taxation highest priority

The 2017 G20 leaders’ summit took place in Hamburg last week where the European Commission Council and leaders discussed the priorities and primary projects for the upcoming summit. EC President Jean-Claude Juncker has stated that advancing the global combat against tax evasion is top of the list.

The EC takes action against advocates promoting tax avoidance schemes

The EC takes action against advocates promoting tax avoidance schemes

The European Commission has recommended the implementation of a new regulation regarding companies or intermediaries who promote or design cross-border tax planning schemes will going forward be required to provide full disclosure to the tax authorities of their relevant jurisdiction within five days of offering them to clients.

What are the new Beneficial Ownership reporting requirements for BVI companies?

What are the new Beneficial Ownership reporting requirements for BVI companies?

Going forward, a new regulation will require certain British Virgin Islands companies to gather and retain details of Beneficial Owners with 25% or more of the company’s shareholding rights, with an ongoing requirement to keep the details up to date.

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Russian citizens can gain Cyprus tax residency by staying only 60 days on island, whats the catch?

Cyprus is once again working to improve its economic desirability and will be able to increase its alternative business base for Russians with good creditworthiness.

Cyprus tax department releases new guidance on CRS deadlines and the online portal

Cyprus tax department releases new guidance on CRS deadlines and the online portal

The Cyprus Tax Department has released a notification to all Cyprus based Financial Institutions & Service Providers of the new guidance notes on the Automatic Exchange of Financial Account Information and other information relating to the Common Reporting Standard (CRS).