Know About the Reporting Compliance and Tax Framework for Overseas Firms Operating in NZ

For the companies that want to do business in New Zealand, it’s essential to have an understanding of both the tax framework as well as the financial reporting. This overview is only a brief glance at the crucial areas and we recommend discussing about these with a professional tax accountant in Auckland. 

Financial reporting

The financial reporting compliance with respect to the overseas firms doing business in NZ is straightforward. The considerations mainly include: 

1. Registration with NZ Companies Office
   
   Before anything else is done, it is important to register the business with NZ Companies Office. This must be done without a delay as you will have only ten days from the day when you start the business first in NZ for registration.
   
   
2. Submitting the audited annual accounts to Inland Revenue, which are NZIFRS
   
   Work that is involved here may be quite onerous and involving. Talk to a professional accountant and simplify the method and avoid any kind of unpleasant surprises about scale of the financial reporting needs in New Zealand.
    
3. Submitting the annual returns through an online form
   
   
4. Maintain the accounting and statutory tax records. These requite to comply with the tax obligations and requirements of the IFRS. 

Tax framework for businesses or non-resident contractors who are in New Zealand for less than six months

1. If a business is in NZ for less than six months, the tax implications are generally straightforward and light then. The framework given below identifies the obligation areas:
   
2. If a company is importing goods to NZ, the company will need to consider the GST and NZ Customs duties.
   
   
3. If staff is being brought to NZ at this span of time, they will become liable to tax, triggering the employment tax implications like FBT, PAYE, ACC etc.

Staffs who are employed in New Zealand may not necessarily be charged to pay tax. It will depend on their circumstances.

Tax framework for businesses that are in NZ for more than six months

Companies will be taxable in NZ if they are operating here for more than six months. However, in some cases it is even twelve months. They will become liable to pay income tax, GST on New Zealand sales of services and goods, submit annual tax returns for their business etc.