Flexible licensing and established labour laws and regulatory frameworks have positioned New Zealand as one of the world's most efficient and competitive entrepreneurial environments. This is further enhanced by a competitive financial sector which offers advanced, sophisticated financial instruments to boost business activity. Trade openness, supported by low tariff rates and few barriers to foreign investment, have also made New Zealand an attractive destination for trade and investment. 

The historic signing of the Australia-New Zealand Closer Economic Relations (CER) Trade Agreement strengthened economic ties between the two countries across innumerable sectors. Labour market regulations have been eradicated between the two countries, allowing free labour mobility, while many other areas of regulation – aviation, healthcare and food safety, for example – have been standardised to form a Single Economic Market (SEM). New Zealand's largest export partners are China, Australia and the US. 

Corporate Treasury in New Zealand 

New Zealand has well developed financial markets, sound banks and a business-friendly economy. In this section, we highlight some of the key benefits relevant to treasury and cash management. 

Financial Market Development 

• Wellington is ranked 46th in the 2021 Global Financial Centres Index by Z/Yen Group.   
• New Zealand has good business infrastructure, an educated English-speaking workforce and a sound legal environment. 
• There are no foreign-exchange controls in New Zealand. 

Sophistication of Banking Systems 

• There are 27 registered banks in New Zealand, 12 of which are branches of foreign banks. 
• The size of New Zealand’s debt market has more than doubled in the past decade, with both government and corporate bonds available. Non-resident entities can also issue bonds in New Zealand dollars, known as Kauri bonds. Outstanding bonds with a value of NZD41.69 billion are listed on the NZX Debt Market.  

Regulatory Bodies 

• The banking industry is regulated by the Reserve Bank of New Zealand, which is the country’s central bank. Regulations are in line with international standards. 

 Tax 

• The corporate income tax rate is 28%. 
• Resident companies are taxed on worldwide income whilst non-resident companies are taxed on New Zealand-sourced income.
• Profits from the branch of a foreign company are taxed at the same rate as a resident company’s profits. There is no branch profits remittance tax on the remittance of profits to the head office by the branch of a foreign company. 
• The standard rate for Goods and Services Tax (GST) is 15% with certain goods and services being zero-rated whilst others are exempted. 
• All interest derived by a company is treated as corporate income. 
• Interest expenses that are used for business purposes are generally tax-deductible. However, the deductibility of the interest is restricted when the company’s allowable debt level exceeds the safe harbour debt-to-asset ratio. 
• There are no stamp duties in New Zealand. 
• Income or expenditure from financial arrangements, such as debt and debt instruments, including foreign exchange gains and losses, must be recognised on an accrual basis. When an arrangement matures or is disposed of, the holder must calculate a base price adjustment.  
• Withholding tax (WHT) is charged at 33% on certain types of dividends, and at 28% on interest earned by resident companies. For non-resident companies where no tax treaty is in place, WHT of 0%, 15% or 30% is charged on dividends and 15% on interest. Where a tax treaty is in place and the non-resident can provide the Certificate of Residence, WHT ranges from 0% to 25% for dividends and 0% to 15% for interest. 
• New Zealand has tax treaties with 40 countries and territories. 
• New Zealand is a signatory to the Organisation for Economic Co-operation and Development’s Multilateral Competent Authority Agreement, through which information is exchanged between tax administrations, to provide a single, global picture on some key indicators of economic activity within multinational enterprises. 

 Benefits for Regional Treasury Centres 

• New Zealand has well-developed financial markets and offers proximity to fast-growing Asian markets with no currency controls. 
• New Zealand has one of the least regulated free-market economies in the Organisation for Economic Co-operation and Development (OECD), with a sound business infrastructure and a strong rule of law. 
• It is a member of the Asian Payment Network, a common payment settlement platform within the Asia-Pacific region. 
• Domestic and cross-border notional pooling and cash concentration is permitted.