The economy of New Zealand

The economy of New Zealand is a developed market economy. It is the 53rd-largest national economy in the world when measured by nominal gross domestic product (GDP) and the 68th-largest in the world when measured by purchasing power parity (PPP). New Zealand has one of the most globally competitive and free market economies. It is ranked highly in terms of economic freedom, ease of doing business, and government transparency.

New Zealand's GDP is largely dependent on international trade, particularly with Australia, the United States, and China. The country's major exports include dairy products, meat, forestry products, and fish. Its major imports include machinery and equipment, petroleum products, and vehicles.

The New Zealand economy is heavily reliant on tourism, which accounts for around 10% of GDP. Other important sectors include agriculture, manufacturing, and financial services. The country also has a well-developed financial sector and is home to a number of large international banks.

How does New Zealand regulate financial markets?

New Zealand regulates its financial markets through the Financial Markets Authority (FMA). The FMA is responsible for the regulation of financial services, including securities markets, financial advisers, and insurance. It works to ensure that investors are provided with accurate and timely information, and that financial markets are fair, efficient, and transparent. The FMA also works to protect consumers from financial loss due to fraud or other misconduct. The FMA is also responsible for monitoring and enforcing compliance with the Financial Markets Conduct Act 2013, which sets out the regulatory framework for financial markets in New Zealand.

How to register a company in New Zealand?

1. Choose a company name: Before registering your company, you must choose a unique name that is not already in use. Your company name must also comply with the Companies Act 1993. 

2. Appoint a director: You must appoint at least one director who is a natural person (not a company) and who is aged 18 or over. 

3. Appoint a company secretary: You must appoint a company secretary who is responsible for ensuring the company complies with the Companies Act 1993. 

4. Register your company: You must register your company with the Companies Office. You can do this online or by post. 

5. Open a bank account: You will need to open a bank account for your company. 

6. Get an IRD number: You must get an IRD number for your company from Inland Revenue. 

7. File annual returns: You must file annual returns with the Companies Office each year. 8. Keep records: You must keep accurate records of your company’s financial transactions.

Taxation in New Zealand

Taxation in New Zealand is managed by the Inland Revenue Department (IRD), a government agency responsible for collecting taxes and administering the tax system. The main taxes collected in New Zealand are income tax, goods and services tax (GST), company tax, and fringe benefit tax.

Income tax is the largest source of revenue for the government and is levied on individuals, businesses, and trusts. The income tax rate for individuals is progressive, with higher earners paying a higher rate of tax. GST is a value-added tax that is applied to most goods and services at a rate of 15%. Company tax is levied on businesses at a rate of 28%. Fringe benefit tax is a tax on certain benefits provided to employees, such as cars, accommodation, and entertainment.

The government also collects taxes on property, investments, and other sources of income. In addition, there are a number of taxes that are specific to certain industries, such as the Accommodation Tax, which is levied on accommodation providers.

The government also collects taxes from international visitors through the International Visitor Levy and the International Visitor Conservation and Tourism Levy. These levies are charged on international visitors who stay in New Zealand for more than one month. Taxation in New Zealand is generally considered to be fair and equitable. The government has a range of tax credits and deductions available to help reduce the amount of tax paid by individuals and businesses.