If you want to incorporate in New Zealand, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC which is the most common legal entity in New Zealand.
New Zealand taxes entities on their worldwide income. The predominant standard rate for offshore income remitted back, from our research, but seek professional advice, is 28%. The country may have exemptions to remit income made internationally. Corporate income tax standard rate is 28%. This ranks New Zealand as 130th overall with regards to corp. taxation rate internationally.
The value added tax (VAT) rate in New Zealand is 15.00%, that ranks New Zealand as 128th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 3% to the equivalent of a social security fund and an employee will contribute 3%. The overall complexity of the tax system is medium. This is measured by average time to comply with a country's labor tax requirements is as it is 59hours. Contributing to this is the number of yearly labor tax payments, which is 2 in NZ.
Thin cap standards are officially enacted. Thin capitalisation refers to any type of laws on companies' debt-to-asset ratios.
Dividends received from resident entities may be exempted, provided that profits were already taxed. Dividends from foreign entities are usually exempted from taxation, unless dividends are on a fixed rate share or dividends for which the foreign company has received a tax deduction in its home jurisdiction, or a certain dividend from a portfolio foreign investment fund. Dividends are payments of earnings of the legal entity, passed by by the board of directors, to shareholders. Dividends can be either stock, cash, or property.
There is no Capital Gains Tax. However, certain gains may be subject to corporate income tax, such as those from the sale of real estate in certain cases. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.
Dividends paid to non-residents are subject to withholding tax. Rates may vary depending if profits are taxed already in the corporate level. If profits are not taxed, dividends are subject to a withholding rate of 30%. If profits are already taxed, an exemption of withholding tax applies, as long as non-resident has 10% or more voting interest in the company. If not, dividends withholding tax may be 15%. Payments on interests and royalties to non-resident are subject to a withholding tax of 15%. Withholding tax rates may be reduced under a tax treaty.
There is no known tax on wealth in New Zealand. There are no known inheritance and transfer taxes. There is a real property tax. There are well known credits for innovation spend that include tax incentives in New Zealand.
The above is not tax or legal advice for your particular tax obligations. We can help you to find to a tax advisor in New Zealand who advise you. Ready to get started? Click incorporate now if you are in a hurry, or press the free consultation button above.
It takes approximately 34 hours to file and prepare documents for a New Zealand Common law.
The corporate tax is approximately 28% which is 130 in the world.
Owners of a company in New Zealand are not allowed to carry back a loss and may be allowed to carry forward a loss for 100 years.
The vat rate in New Zealand is 15% which ranks 78 in the world.