- An aid to asset protection and succession planning.
- Flexibility.
- The confidential nature of a trust.
- The fact that New Zealand is a stable, onshore, whitelisted jurisdiction and is not regarded as a tax haven.
- The limited reporting requirements and compliance obligations.
- No tax being payable to the New Zealand Inland Revenue Department on foreign earned income.
- To qualify as a New Zealand foreign trust the trust must comply with all four of the following requirements:
- The settlor who transfers property to the New Zealand foreign trust must be a non New Zealand resident.
- The trustee must hold the property of the trust for nonresident beneficiaries.
- The trust’s income must be sourced from businesses and/or investments which are not in New Zealand.
- The trust is required to have a New Zealand resident trustee (which can be a company or in certain specified cases an individual).
The New Zealand foreign trust regime is a flexible and tax efficient means of holding assets and/or conducting commercial activities in a confidential and tax efficient manner. Each trust must be tailored to suit the requirements and objectives of those setting it up.
For further information please contact Jeremy Carr [email protected] or Hamish Taylor [email protected].