Why It Is Important To Set Up Your New Zealand Company Correctly
Due to a change in New Zealand and Australian tax policies, the rules relating to setting up a business in New Zealand from Australia just got a whole lot more complicated.
You’ve probably seen on the news how every country is wanting a share of the taxes paid by the giants like Google and Facebook. International treaties have been entered into by both New Zealand and Australia, the double tax agreement has been amended and both countries have issued various proclamations on how they interpret these agreements.
Small businesses have, in some ways, become collateral damage of this fight for Australia’s share of international tax.
In order to counter double-taxation the company needs to be structured correctly. And for you to be able to run your business from Australia there are a number of factors which need to be considered. Thankfully, making it easy for Australians to do business in New Zealand is all we do. Every single day.
We can arrange everything you need to start business in New Zealand. All without you leaving Australia.
It is fair to say over the next few years a lot of Australian-controlled business owners (and their accountants) are going to receive unwelcome penalty notices from the ATO or Inland Revenue as a result of these New Zealand businesses not being set up as the should have been. We can ensure this won’t be you.
We are the only firm that specialises in helping Australians wanting to do business in, or with, New Zealand.
We understand how the rules apply to small Australian-controlled businesses and we can help you achieve exactly what you need to achieve. Legitimately. With no nasty surprises down the track.
We can assist you to do everything you will need to do before commencing business in New Zealand.
Below are our recommended options. We strongly suggest that you choose our Double Tax option, as the first $2500 of profit will pay for it.
Setting Up Your Business For New Zealand Conditions
For most clients this entire process can be completed within a couple of days.
Whether it’s registering your Australian company in New Zealand or setting up a New Zealand company, we can advise on the best structure for your circumstances and then we can make it happen.
And because we have a good understanding of all New Zealand legislation (as well as the tax stuff) we’ll make sure you have everything you need. You won’t have to constantly find new documentation resulting in weeks of delays in getting your business up and running.
We know it all and our job is to make it as easy as we can for you.
Not only will we be incorporating your company, we will also be carrying out the security checks required under New Zealand’s anti-money laundering and counterterrorism financing legislation. That’s an obligation we have as a Reporting Entity.
The good news for you is that you will be dealing with other New Zealand entities further down the line. Whether that be Inland Revenue, Banks, other New Zealand Government Departments or even other customers, we will be tailoring our requirements to make it easier for you to open your doors to new opportunities in New Zealand.
You will have the documents you need to make those stages easier.
Not only that, we will also make sure you have the statutory records you are required to have when commencing business in New Zealand.
By the end of this stage you will be able to enter into agreements and negotiate deals with your New Zealand customers.
Avoiding Double Taxation. Pay the right amount of tax, once, to the right country.
The double tax saved on the first $2500 of your New Zealand venture will pay for this entire process!
For small Australian-controlled companies wanting to set up business in New Zealand, the trans-Tasman environment has become a more challenging place.
If you want things working right from the get go, it’s essential to get things structured correctly. The right shareholders in place, submitting the appropriate applications and registrations with the ATO and Inland Revenue including in some circumstances getting agreement from the tax authorities to exempt you from tax. We have a 100% success rate in that.
As well as the double tax agreement between Australia and New Zealand, both countries have also entered into a number of international agreements that, in most cases, will have businesses being double taxed unless set up correctly. What’s more, Australia and New Zealand have signed up to different (and sometimes conflicting) provisions of the same agreements!
We are right across it all and will help ensure there are no double tax, penalty or other nasty surprises down the track. Whether you plan to use Australian trusts, Australian companies or individuals, we will let you know what’s best for your situation.
We will then complete the entire registration process, apply for all the applicable tax types (including New Zealand GST), negotiate with Inland Revenue and the ATO on your behalf, all in order to get the best solution for you.
We will be working closely with your Australian tax advisor. We don’t do Australian tax work however, because this is our space, we will often know more about how your New Zealand business will be impacting on your Australian situation. So we will be letting them know what we have done, why we have done it and how it impacts on you in Australia.
We will also ensure you have access to the New Zealand (myIR) tax portal which can be a bit of a challenge for non-residents.
And when everything is all set up you can have a chat to one of our New Zealand tax team on all those other little bits you might want to know about New Zealand GST, paying employees and the general New Zealand tax questions we get all the time.
Because we are New Zealand tax agents we can handle every bit of your New Zealand compliance. So moving forward we’d be delighted to look after the preparation and filing of your various New Zealand tax returns. Separate fee applies.
You will find our fees surprisingly competitive and considering we are the only accounting firm that specialises in helping Australian businesses set up in New Zealand, nothing we will do will backfire on you here in Australia.
At the end of this process you will have everything you need to comply with both New Zealand and Australian requirements from a tax perspective.
And you will be paying no more tax than you are required to pay.
Assist With New Zealand Bank Account, Tax Residency and Other Required Documentation
Prior to applying for your New Zealand IRD (tax file) number your New Zealand company will be required to have a New Zealand bank account.
You’ll probably want one in any case in order to bank the money from your New Zealand customers!
Opening a New Zealand bank account for an Australian-controlled company can be problematic. New Zealand’s anti-money laundering and counterterrorism financing legislation places a number of obligations on New Zealand banks which can often make it too hard for them to be bothered.
We can assist you to get a New Zealand bank account without you having to leave Australia. In fact you probably won’t even have to visit your local bank.
Our compliance team have great relationships with the main New Zealand banks* and we can assist most clients to have a New Zealand bank account within a week.
New Zealand banks will also require you to complete tax residency declarations. We can complete the forms on your behalf**.
*Please note that New Zealand banks are frequently changing their policies. For that reason we can’t guarantee that your preferred bank will be opening up accounts at the time that you apply. However we will always have options with leading New Zealand banks.
**Determining the tax residency (or residencies) of a New Zealand company can be a complex matter and significant penalties apply to Directors who sign incorrect declarations. In our double taxation discussion (above) we will be determining your Tax Residency and will be able to use this information in completing the form. However if you haven’t engaged us to determine your Tax Residency you will need to provide advice from another suitably qualified person before we will complete this form on your behalf. We don’t take any responsibility for incorrect residency determinations completed by 3rd parties.
New Zealand Registered Office Service
Our New Zealand Registered Office service must be the best value available to Australian-controlled businesses (even if we say so ourselves).
All companies carrying out business in New Zealand are required to be registered with the New Zealand Companies Office (the equivalent of ASIC). A requirement of that process is to have a registered office in New Zealand.
The Registered Office is where the statutory records required under New Zealand legislation are kept. It is also the place where other parties wishing to serve documents on the company can do so.
As an Australian-controlled company, your registered office will be visited by the Registries and Integrities division of the New Zealand Companies Office in a number of unannounced visits, where officers will be checking for the completeness of the records and compliance with New Zealand legislation.
Instant fines of $10,000 per Director (which are enforceable in Australia) can be levied on the spot for non-compliance.
Our team are trained to deal with these visits and we will have your records available for these inspections.
And because we focus on helping Australians to do business in New Zealand, we can provide all Tax Returns, Financial Records, Minutes, Resolutions and any other document that is required to be signed by a Director or Shareholder of an Australian-controlled business in New Zealand online.
Directors and Shareholders will be able to approve them using your computer or mobile device. For most documents there will be no need for you to print, sign and remember to return.
It also means we remind you if you haven’t approved documents in a timely manner.
Ultimately the responsibility is with the Director but we have a number of checks and balances in place to make it as easy as we can for you.
If you want online access to your Statutory Records we provide an option for you to do that.
Providing you use our Registered Office service we can also offer the use of our PO Box which is regularly cleared by our Auckland-based team. Mail is opened, scanned and instantly made available to you for your action. We can also receive parcels on your behalf and forward them as directed (additional fees apply).
That’s a fully serviced postal address for just $20 + GST per month!
New Zealand Phone Numbers
We have access to phone numbers for most towns and cities throughout New Zealand. We only use tier 1 suppliers so calls will be crystal-clear with no pesky voice delays.
Importantly, your callers will hear a familiar New Zealand ring tone when calling you.
Our fee includes up to 60 minutes of incoming calls per month transferred to any Australian mobile or landline. Additional calls cost $0.15 per completed minute + GST.
New Zealand Customs Importer and Exporter Registration
We can apply for your New Zealand Customs Codes to facilitate easy processing of goods crossing the border in or out of New Zealand. A New Zealand Customs Code is required as part of the import and export entry preparation for shipments valued at NZ$1000 or more.
Our New Zealand expert, Mike Reddy, is a New Zealand accountant and NZ-registered tax agent based in Sydney. He works with individuals and small businesses throughout Australia to help take care of your New Zealand tax questions and Returns from our Sydney-based office.
Having been preparing and filing New Zealand tax returns and claiming tax refunds for New Zealanders since 1994, Mike is the most experienced New Zealand tax agent in Australia. He is regularly engaged by Australian tax agents and accountants who have clients with New Zealand interests.
So when it comes to looking after your New Zealand affairs, Mike can definitely help you with the right advice.
Call us now on 1300 791 600. There is no charge for a quick chat so we can talk you through the issues.