New Zealand

New Zealand - Common law
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New Zealand taxes

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.

Patent box
RND credit
Wealth tax
Estate tax
Transfer taxes
Asset taxes
Capital duties
58Tax treaties
28%Offshore Tax
28%Corp rate
-Loss carryback years
34Corporate time
15%VAT rate
0%Capital gains
2018AEOI planned

Read this to learn about incorporating a company in
New Zealand

We can help you form a company in New Zealand. Click the button above for a no-obligation quote. We will provide you with all the necessary documents to open a bank account as well as a registered office in New Zealand, which is required by law.

New Zealand Tax Treaties

CountryTypeDate signed
Russia
DTC 2000-09-05
Czech Republic
DTC 2007-10-26
China
DTC 1986-09-16
Australia
DTC 2009-06-26
Chile
DTC 2003-12-10
Gibraltar
TIEA2009-08-13
Jersey
TIEA2009-07-27
Isle of Man
TIEA2009-07-27
Samoa
TIEA2010-08-24
Norway
DTC 1982-04-20
Fiji
DTC 1976-10-27
Ireland
DTC 1986-09-19
Papua New Guinea
DTC 2012-10-29
Dominica
TIEA2010-03-16
Vanuatu
TIEA2010-08-04
Saint Kitts and Nevis
TIEA2009-11-24
Denmark
DTC 1980-10-10
Saint Vincent and the Grenadines
TIEA2010-03-16
Japan DTC 2012-12-10
Bermuda
TIEA2009-04-16
Turks and Caicos Islands
TIEA2009-12-11
South Korea
DTC 1981-10-06
Sweden
DTC 1979-02-21
Mexico
DTC 2006-11-16
Belgium
DTC 1981-09-15
Cook Islands
TIEA2009-07-09
Marshall Islands
TIEA2010-08-04
Malaysia
DTC 1976-03-19
Indonesia
DTC 1987-03-25
Turkey
DTC 2010-04-22
Vietnam
DTC 2013-08-05
Hong Kong
DTC 2010-12-01
Canada
DTC 2012-05-03
South Africa
DTC 2002-02-18
Germany
DTC 1978-10-20
Poland
DTC 2005-04-21
Anguilla
TIEA2009-12-11
United Kingdom
DTC 1983-08-04
Philippines
DTC 1980-04-29
United Arab Emirates
DTC 2003-10-22
Austria
DTC 2006-09-21
Netherlands
DTC 1980-10-15
Bahamas
TIEA2009-11-18
Sint Maarten
TIEA2007-03-01
Switzerland
DTC 1980-06-06
Spain
DTC 2005-07-28
United States
DTC 1982-07-23
Singapore
DTC 2009-08-21
Taiwan
DTC 1996-12-11
Thailand
DTC 1998-10-22
India
DTC 1986-10-17
Curacao
TIEA2007-03-01
Niue
TIEA2012-08-29
Italy
DTC 1979-12-06
Cayman Islands
TIEA2009-08-13
Finland
DTC 1982-03-12
France
DTC 1979-11-30
Guernsey
TIEA2009-07-21

Country Info

National Flag of
New Zealand (eng)
Aotearoa (mri)
New Zealand (nzs)
Currency
NZD
Area Code
+64
Capital
Wellington
Region
Australia and New Zealand
Native Languages
English
Māori
New Zealand Sign Language