| Many people look for a decent low-tax jurisdiction to | | | | fact is that this advantage is based not on a loophole |
| incorporate their offshore business. Most tax havens | | | | in the law but instead on a specific, and very prudent in |
| already acquired negative connotations and are not | | | | our understanding, interpretation of taxation basics by |
| suitable in certain circumstances. New Zealand is a | | | | New Zealand tax authorities. The offshore income |
| fresh choice. | | | | from such activities is not subject to tax in New |
| New Zealand is a first world country, a member of | | | | Zealand, because it is not legally attributable to NZ |
| OECD, which never was a part to any blacklists of | | | | company. |
| harmful tax havens. It offers absolutely respectable | | | | NZ Foreign Trust construction is good for nearly any |
| international image and serious tax privileges at the | | | | business, be it trading or other commercial activities, |
| same time. | | | | savings and investments, holding of title to any |
| The structure of interest is normally a New Zealand | | | | property. As any other trust structure, it is an |
| Foreign Trust, also referred to as New Zealand | | | | instrument for wealth management and protection. |
| Offshore Trust. | | | | It can be used as an independent business tool - as |
| The concept of foreign trust was introduced in 1988. It | | | | soon as the source of income is outside New Zealand |
| does not require to be officially registered for its | | | | it is tax exempt. You are only to make sure you are |
| recognition in New Zealand and worldwide, particularly | | | | not subject to tax at the source of income. |
| in the countries with English law and those who joined | | | | The other remarkable feature is possibility to apply for |
| the Hague Convention on the Recognition of Trusts or | | | | double tax treaty protection. New Zealand has |
| have double tax treaties with New Zealand. | | | | agreements with 35 countries. Each of them, of |
| NZ Foreign Trust with non-resident Settlors and a local | | | | course, requires lawyer's interpretation, but as soon as |
| NZ Trustee is considered a tax resident of New | | | | you qualify for DTT protection, you may count on |
| Zealand but tax exempted with all its offshore income. | | | | reduced withholding tax rates on dividends, interests |
| What happens in practice in most cases, you | | | | and royalties. And the same income is not subject to |
| incorporate your own New Zealand company with | | | | any further taxation in New Zealand following its |
| local NZ directors, then settle a Trust with this | | | | offshore nature. |
| company being a Trustee. NZ Trustee company can | | | | One more thing is that comparing to other jurisdictions |
| conduct any international activities in its name but in | | | | with similar benefits, NZ Foreign Trust is quite |
| favor of the beneficiaries, free of tax. An interesting | | | | affordable in setup and ongoing maintenance. |