International investment has contributed significantly to the development of New Zealand’s economy. New Zealand welcomes investors and offers an attractive, open business environment. Transparent regulations make investing a straightforward process while the broad-based, low-rate tax regime supports long-term investors.
New Zealand has a consistent political environment where overseas investors are treated on the same basis as domestic investors. There are no restrictions on the movement of funds in or out of New Zealand, or on repatriation of profits.
Efficient, market-oriented economy
With more than a decade of economic restructuring, New Zealand has a stable and internationally competitive economy. The privatisation of several utilities and state services has given rise to one of the most efficient and competition friendly economies in the world. Furthermore, a free and independent media in New Zealand ensures a high level of transparency in the corporate and government decision-making processes.
Simple tax system
New Zealand has a competitive and low-compliance tax system. We are third lowest in the OECD for time taken for taxpayers to comply with tax obligations (World Bank Doing Business, Paying Taxes 2010). In 2009, the corporate income tax rate was reduced from 33 percent to 30 percent.
In New Zealand there is:
- no payroll tax
- no social security tax (voluntary KiwiSaver was introduced 2007)
- no capital gains tax. We have recoverable Goods and Services (VAT) tax, and tax-deductible business expenses (including research and development) and depreciation.
Innovative and highly entrepreneurial culture
New Zealand has produced entrepreneurs with the aptitude to generate new ideas that challenge the expected, who have can-do attitudes and an ability to make more from less. At the forefront is a group of ambitious, high-growth and internationally focused companies.
Some plan to be global from day one while others rapidly outgrow the New Zealand market. Many are investment-ready and have moved beyond the ability of the domestic capital market to fund their growth.
Strong investor protection
New Zealand provides a safe and secure investment environment through robust business laws and is ranked first in the world for investor protection (World Bank Doing Business report 2011). We are one of the world’s most efficient, competition-friendly economies.