[ESTABLISHING A BUSINESS ENTITY IN NEW ZEALAND] 357
deemed beneficiary income. Tax losses remain at the trust level and can be utilised or carried forward by the trust. No RWT/NRWT payable. Loss limitation rule does not apply. The trust can register for GST. TAXATION In New Zealand the Government collects and administers tax through the Inland Revenue Department ("IRD"). The IRD collects tax under two primary pieces of legislation. They are:
should be noted that an overseas company is taxed at the same rate but only in respect of its
income that has a New Zealand source). FINANCIAL SERVICE PROVIDERS (FSP)
Any New Zealand entity or person in the business of providing ‘financial services’ (in NZ or overseas) must register as a Financial Service Provider (FSP) on the Financial Service Providers Register (FSPR). Financial services What qualifies as a ‘financial service’ is vast and is defined in the Financial Service Providers (Registration and Dispute Resolution) Act 2008. Financial services include: 1. Financial advisors, Brokering; Providing credit under a credit contract; Issuer or offeror of financial products; Changing foreign currency; Trading financial products or foreign exchange on behalf of other persons. Registration process The FSPR is a branch of the Companies Office. Registration as an FSP is an online process. It is somewhat more involved and sometimes lengthy than the process for registering a company or limited partnership.
21. The Income Tax Act 2007; and The Goods and Services Tax Act 1985.
The latter is a consumption tax commonly called "GST", charged at a flat rate of 15%. In addition, import tariffs, miscellaneous excise duties and rates are collected. Some of the important features of the New Zealand tax system and policy environment are that: 1. There is generally no capital gains tax (however what is effectively a capital gains tax can apply to some foreign debt, financial arrangements and property investments); There is no employee payroll tax; There is no social security tax; New Zealand is a party to numerous double agreements; and Personal tax rates vary, depending on income; A New Zealand resident company is taxable on its worldwide income at a flat rate of 28%; All companies, whether resident or non- resident, are taxed at the same rate (however it
ILN Corporate Group – Establishing a Business Entity Series
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