New Zealand Company Update

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New Zealand Company Update

• GT Group Offshore
• New Requirements
• and Information

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Company Types

• Trustee Company (Tax Free)
• Nominee Company (Tax Liable)
• Holding Company (No Income Allowed)

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Trustee Company

• A New Zealand Foreign Trust is modelled on the
  English style of trust, which requires an
  offshore resident Settlor (we can provide this as
  standard) and a New Zealand company to act as
  Corporate Trustee. All income sourced offshore
  through this company (acting as sole trustee on
  behalf of the trust) is totally tax free, and
  there are no capital gains, inheritance taxes or
  forced heirship. Any income earned within New
  Zealand (example interest from a bank account) is
  subject to domestic tax. The income, at your
  client's discretion can either be retained in the
  trust, or alternatively distributed to your
  client's named beneficiaries.

IMPORTANT...
The Trustee Company is the Structure that we most
recommend.
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Nominee Company

• A NZ company is incorporated and enters into an
  agreement with the offshore company. Under that
  agreement, which is committed to writing and
  executed by both parties, the NZ company agrees
  that it will trade on behalf of the offshore
  company as its nominee. All contracts of purchase
  and sale, all the invoicing and all the general
  correspondence will be made in the name of the NZ
  company and the NZ company receives all the
  revenues from such business as nominee for the
  offshore principal. The agreement should state
  that all monies received are received as nominee
  for the principal save insofar as there will be
  an agreed fee which will be retained by the NZ
  company. That fee may either be expressed as a
  flat fee for all the trading done on an annual
  basis (sufficient to cover the minimal costs) or,
  expressed as a percentage of the gross revenues
  received. The standard form is that 1 to 5 of
  the invoice total in respect of each transaction
  is retained by way of fee by the NZ company.

IMPORTANT...
Contact us for full details regarding this
structure.
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Holding Company.

• There may be many names for this type of company
  such as Dormant, Non-trading, Zero-rated etc,
  which can best be described as a company that
  does not trade, or receive income. This is a
  simple company type as it can always file a zero
  return and there are no issues in any way with
  taxation. Usually this type of company will not
  open a bank account as the risks become too high
  where interest may be received and deemed as
  income.
• A New Zealand Holding Company is a great vehicle
  for holding non-profit assets at arms length for
  any number of reasons. Clients often have a
  genuine and legal desire to hold assets in a
  company name, especially in a different country.
• When a New Zealand Company holds shares as an
  investment, it will not be taxed on gains from
  the subsequent sale of shares unless it is in the
  business of dealing in such investments or
  acquired the shares for the purpose of sale or
  where the sale is a part of a profit making
  undertaking or scheme.

IMPORTANT...
You must be totally certain that this company
will not trade or have any income of any kind.
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New Requirements

• Under new legislation, a New Zealand Foreign
  Trust must register with the New Zealand Inland
  Revenue Department (IRD).
• For a New Zealand Foreign Trust to qualify as
  tax-free, it must have at least one New Zealand
  Resident Director who fits into one of two
  categories as follows
• New Zealand Resident Unqualified Director
• New Zealand Resident Qualifying Director
• We have decided that for all new and possibly
  existing Trustee Companies, we will commence with
  the services of a New Zealand Resident
  Unqualified Director. This will assist us to keep
  the increase in costs to a minimum as Qualifying
  Directors will charge USD1000 per year or more.
• If you have been using your own directors, you
  can either use a combination of both your
  director and our New Zealand Resident Director,
  or use only our New Zealand Resident Director.
• As of 01 July 2007, The New Zealand Companies
  Office increased their fees by 300! This still
  leaves NZ as one of the least expensive offshore
  jurisdictions.

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What does this mean for you?

• Please note that we have been working hard to
  find the best solutions for you and your clients
  at the best possible prices. Our services are
  still well below what most other companies are
  charging.
• You MUST advise us of the company type when you
  send in your new orders, remember that the
  choices are Trustee, Nominee or Dormant.
• When incorporating a Trustee Company, you can
  elect to choose a Trust Name, or we will chose
  one for you, in most cases the Trust name is of
  little importance.
• We must know the Jurisdiction in which the
  end-user (your client) is a Resident or Citizen.
• You MUST provide a signed declaration of
  indemnity for the New Zealand Director. This form
  will be sent to you as a template. If the company
  is sold as a Shelf Company, the declaration
  should be signed as soon as you sell the
  Company.
• You must also advise us of who will be the
  Beneficiaries, Appoitor / Protector and if you
  have any other special requirements for the New
  Zealand Foreign Trust Deed. Please ask us for our
  application form to ensure you provide us with
  the correct application information.

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Special Notes Trustee Company

• We are aware that most end-users struggle to
  understand the full details of this very unique
  structure. For this reason, it is considered
  acceptable to inform the client only that the
  company is not liable to pay any form of taxation
  in New Zealand, provided that it does not do
  business in, or with New Zealand and that the
  client has no connection to or with New Zealand.
  
• Most of our professional clients do not mention
  the Trust side of the structure to their clients
  as it is of little importance to them, however,
  as we will need to create a Trust Deed and name
  the beneficiaries, the client should be given the
  chance to name the beneficiaries.
• We do have a solution to ensure that the client
  is not named in the Trust Deed, but is placed in
  a position where the Appointor of the Trust can
  elevate them to the position of Trustee at any
  time. We must still know who the end user is.

FOR MORE INFORMATION...
Contact us to either email your questions, or
arrange a teleconference or Skype to ensure you
are 100 clear on all matters relating to our New
Zealand Structures.
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Contact Information

• Contact GT Group Offshore
• Email GTGroup_at_vanuatu.com.vu
• Phone [phone] (GMT 10)
• Web www.gtgroup.com.vu