It is not required for non-resident businesses to have a fiscal representative in New Zealand. However, the appointment of a fiscal representative or agent can be voluntary. This arrangement allows non-resident businesses to manage their tax affairs, facilitate transactions, and comply with local regulations necessary for their operations within New Zealand. Our law firm in New Zealand can assist in appointing a fiscal representative.
Why do you need fiscal representation in New Zealand?
Fiscal representation in New Zealand can be beneficial for non-resident businesses for several reasons. A fiscal representative can assist non-resident businesses in understanding and complying with New Zealand’s tax laws and regulations. He/she can help with filing tax returns, paying taxes, and fulfilling other tax obligations.
Non-resident businesses that are registered for GST in New Zealand or are required to register for GST can also benefit from appointing a fiscal representative to assist with their GST obligations.
Having a fiscal representative in New Zealand provides a local presence for non-resident businesses. This can be especially helpful for communication with tax authorities and physically resolving any tax-related issues that may arise.
The fiscal representative can also help mitigate risks associated with tax penalties, and other issues related to local tax laws and regulations.
You can appoint our lawyers in New Zealand as fiscal representatives.
GST in New Zealand
The Goods and Services Tax (GST) system in New Zealand has a standard GST rate of 15% for most goods and services. However, there are exceptions, including a reduced rate of 9% applicable to long-term hotel accommodation and a 0% GST rate for exports, financial services, international transport, and certain land transactions.
Although non-resident businesses are not mandated to appoint a local fiscal representative in New Zealand for GST, they must ensure compliance with all GST regulations.
Both resident and non-resident businesses exceeding the annual company turnover of NZD 60,000 must register for GST. Those below it can opt for voluntary registration to recover input GST. Registration is facilitated through the Inland Revenue Department (IRD), and the general processing time is less than 10 days. Our attorneys in New Zealand can help with registration.
A fiscal representative in New Zealand can handle filing GST returns. The time of filing returns varies based on the business’s annual turnover, with monthly, bi-monthly, or six-monthly filing options available. Payments and returns must be submitted to the IRD by the 28th of the month following the end of the return period.
Failure to meet these deadlines can result in penalties, including a 1% monthly penalty on unpaid amounts, interest charges on outstanding balances, and a fine of NZD 250 for missing a GST return deadline.
Our New Zealand lawyers will ensure compliance with all GST regulations if appointed as fiscal representatives.
Statistics about New Zealand revenues
Individuals wishing to know more about New Zealand taxes and annual revenue can find the following statistics interesting, as provided by OECD for the year 2021:
- 73,629 million NZD came from taxes on income, profits, and capital gains;
- 43,938 million NZD resulted from the taxes on goods and services;
- Taxes on property amounted to 6,359 million NZD;
- The total tax revenue in New Zealand was 125,731 million NZD.
Our partner accountants in New Zealand can provide support regarding taxes.
If you need more assistance with fiscal representation in New Zealand, you can contact our team right now for assistance.