New-Zealand

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Business Environment

Business Practices

General information: Kwintessential, New Zealand Business Practices.
Opening hours and days: The normal working week is five days, Monday through Friday. The standard day for commercial establishments, bank and public (civil) service is generally 8.30 am to 5.00 pm, with a one hour lunch break. In most cities, retail stores are open seven days per week with at least one late night each week, often Thursday or Friday.

Public holidays

New Years Day	January 1
Day after New Year’s Day	January 2
Waitangi Day (New Zealand National Day)	February 6
Good Friday	Variable
Easter Monday	Variable
Anzac Day	April 25
Queen’s Birthday (Observed)	First Monday in June
Labor Day	Fourth Monday in October
Christmas Day	December 25
Boxing Day	December 26
Provincial Anniversary Day	Dates vary from province to province

Periods when companies usually close

End of year

Usually 1 week around New Year

Accounting Rules

Tax year: The standard year end for all taxpayers is 31 March. Alternative balance sheet dates are generally allowed by the Inland Revenue Department upon application.
Accounting standards: For the full list of approved standards please access the Institute of Chartered Accountants' website.
Accounting regulation bodies: Audit New Zealand
Accounting Standard Review Board
Accounting reports: The accounting structure is described in the GAAP (Generally Accepted Accounting Practice) on the New Zealand Treasury website.
Publication requirements: The "Financial Reporting Act" of 1993 forces any organization to produce an annual report of the financial flows within the 5 months preceding the end of the accounting year, before disclosure to the "Registrar of Companies" for agreement. This report has to include a balance sheet, a profit and loss account and a cash flow statement. Only companies quoted in the stock exchange have to publish their accounts. According to the law of transferable securities and the law of exchange, registrants must file to the Ministry of Finance the annual and biannual statement reports, as well as a copy in the foreign exchange markets where transferable securities are registered.
Professional accountancy bodies: New Zealand Institute of Chartered Accountants
Certification and auditing: The control of accounts must be made by a company certified by "Chartered Accountant". The NZ Institute of Chartered accountants is New Zealand's only professional accounting body. It has three membership groupings: chartered accountants, associate chartered accountants, and accounting technicians. It is based in the capital Wellington
Accounting news: The Chartered Accountants Journal of New Zealand

Tax Rates

Consumption taxes

Nature of the tax: Good and Services tax (GST).
Tax rate: 12,5%
Reduced tax rate: There are various exemptions including exported goods and services.
Other consumption taxes: Local authorities (local Government) raise funds through the imposition of levies and “rates” on owners of residential and commercial property. Rates vary according to the relevant local authority and are based upon the value of the property and range from (very approximately) 0.25% for residential properties to 1.5% for commercial property.

Corporate taxes

Company tax: 30%
Capital gains taxation: Capital gains are not taxed in New Zealand.
Main allowable deductions and tax credit: Access a list of deduction on the taxation department website.

Access the list of claimable business expenses.
Other corporate taxes: Non-monetary benefits such as motorcars, low interest loans, non-business related entertainment and free or subsidized goods provided by employers to employees or their relatives attract fringe benefit tax (FBT) which is payable quarterly by the employer at a rate of 64 percent or a rate based on the marginal tax rate of remuneration paid to the employee. FBT is a deductible expense for income tax purposes. Local authorities (local Government) raise funds through the imposition of levies and “rates” on owners of residential and commercial property. Rates vary according to the relevant local authority and are based upon the value of the property and range from (very approximately) 0.25% for residential properties to 1.5% for commercial property.

Individual taxes

Tax rate

Individual Income Taxe	Progressive rate from 12,5% to 38%.
Up to NZD 14,000	12.5%
NZD 14,001 to 40,000 inclusive	21%
NZD 40,001 to 70,000	33%
NZD 70,001 and above	38%

Allowable deductions and tax credit: Working for Families Tax Credits, child support, tax credits for working parents, and taxation of family trusts and property agreements. For more details go on this website.
Special expatriate tax regime: There is no special expatriate tax regime in New Zealand.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the tax conventions signed by New Zealand.
Whithholding taxes: Dividends: 30%, interest: 15%, Royalties: 15%

Sources of fiscal information

Tax Authorities: New Zealand Customs Service
Inland Revenue
Other domestic resources: Policy Advise Division

Intellectual Property

National organizations: For more information go to the web sites of the two regulation bodies: the Intellectual Property Office of New Zealand and the Copyright Council of New Zealand.
Regional organizations: New Zealand is a member of the Intellectual Property Rights Experts Group (IPEG) of the APEC community.

National regulation and international agreements

Type of property and law	Validity	International agreements signed
Patent Patents Act 1953 No 64 (as at 01 August 2008) and Patents Regulations 1954 (SR 1954/211) (as at 03 September 2007). Decisions of the Commissioner since 1953 are published at www.iponz.govt.nz	20 years
Trademark Trade Marks Act 2002	10 years renewable for 12 month	Trademark law treaty Nice agreement Protocol relating to the Madrid Agreement
Design In New Zealand, the Designs Act 1953 governs the administration of rights to a design. It is accompanied by the Design Regulations 1954	15 years
Copyright http://gpacts.knowledge-basket.co.nz/gpacts/reprint/text/2005/an/060.html	10 years.
Industrial Models Copyright Act 1994. For more information go to this website.	Over 50 Years

Legal Framework

Independence of justice: The judiciary system is independent in New Zealand.
Equal treatment of nationals and foreigners: Foreign nationals can expect an impartial trial from the country’s judicial system.
The language of justice: English and Maori are, as the country official languages, the two judicial languages used in New Zealand.
Recourse to an interpreter: It is possible to have access to an interpreter in New Zealand.
Sources of the law and legal similarities: The system is modeled on the English common law, certain statutes of the United Kingdom Parliament enacted before 1947 (notably the Bill of Rights 1689), and statutes of the New Zealand Parliament.The main source of the law is the constitution which is composed of a series of legal documents, including certain acts of the UK and New Zealand Parliaments, as well as The Constitution Act of 1986. The legal system is based on English law, having special land legislation and land courts for the country’s Maori population. New Zealand accepts compulsory ICJ jurisdiction but with reservations.
Checking national laws online: Law Access
Lexadin, the world law guide

Standards

National standards organizations: Standards New Zealand
Integration in the international standards network: The standards in New Zealand are copied from those prevailing in Great Britain. The Standard Association of New Zealand is competent in the field of standards.
Classification of standards: NZS or AU/NZS
Online consultation of standards: The publication of standards is entrusted to Standards New Zealand which is the “publishing house” of the NZS. The NZS website gives access to the New Zealand standards.
Certification organizations: International Accreditation New Zealand is the national authority for the accreditation of testing and calibration laboratories, inspection bodies and radiology services.

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