🇳🇿 Annual Compliance — New Zealand

Assuming no director residency requirement exists

Fix: New Zealand requires at least one director who lives in New Zealand or an enforcement country (Australia). If you are based elsewhere, you must appoint a local resident director. Use a reputable nominee director service and ensure proper governance agreements are in place.

Failing to register for GST when required

Fix: GST registration is mandatory when your annual turnover exceeds or is expected to exceed NZ$60,000. If you exceed this threshold without registering, you face penalties and back-dated GST liability. Register proactively and choose the right filing frequency (monthly, two-monthly, or six-monthly) for your business size.

Overlooking non-resident withholding tax on dividends

Fix: Dividends paid to non-resident shareholders are subject to 15% NRWT (or a reduced treaty rate). Factor this into your tax planning. Ensure your company claims imputation credits correctly and check whether a double tax treaty between New Zealand and your country of residence offers a reduced withholding rate.

Choosing New Zealand purely for the "no capital gains tax" narrative

Fix: While New Zealand does not have a general capital gains tax, certain property disposals, financial arrangements, and assets acquired with the intention of resale can be taxed as income. The bright-line property test also applies to residential property. Consult a New Zealand tax adviser to understand which gains may be taxable in your specific situation.