Hot Topic Investment in New Zealand

INVESTMENT IN NEW ZEALAND New Zealand – centre of the Universe

INVESTMENT IN NEW ZEALAND wNew Zealand wYoung Country years old w Quality of life w Independent nation w Population 4.2 million w Temperate climate w Famous New Zealanders

INVESTMENT IN NEW ZEALAND Shrek the Sheep

INVESTMENT IN NEW ZEALAND New Zealand All Blacks soon to be World Champs

wEconomy wPrimary sector: Dairy, Meat and Wool, Forestry, Mechanical machinery, Fruit, Fish - mostly exported wTourism biggest earner of overseas funds, Australia, USA, Japan, China, UK, Korea. INVESTMENT IN NEW ZEALAND

wTaxes wIncome tax wGoods and Services tax

w 35% of Govt income spent on education, health and welfare w Double tax agreements with 32 countries w Personal rates, 19.5% to 39%, companies 30% w GST 12.5% on everything, except financial services and residential property w NO sales tax, payroll tax, provincial or state taxes, CGT, stamp duty, IHT, death duties w Withholding taxes reduced under DTA INVESTMENT IN NEW ZEALAND

w39 million sheep, down 20% since 2000 w1970’s over 80 million sheep

INVESTMENT IN NEW ZEALAND w10 years of economic re-structuring wPrivatization of utilities and state services wEase of cross boarder transactions wEase of doing business wDuty free access to Australia - 24 million

INVESTMENT IN NEW ZEALAND wCompetitiveness wEconomic freedom, lack of protectionism wLow levels of corruption wBusiness set up in New Zealand wDe-regulated labour markets wFlexibility of employment wOccupancy costs lowest in world

INVESTMENT IN NEW ZEALAND wNew Zealand Wine Industry wSauvignon Blanc and Pinot Noir wNiche, Premium wines – Premium prices wClimate wResearch wInnovative marketing w$1 billion exports by 2010, UK, North America, Australia

INVESTMENT IN NEW ZEALAND Craggy Range Hawkes Bay Australian Owned

INVESTMENT IN NEW ZEALAND Film Industry

INVESTMENT IN NEW ZEALAND wLord of the Rings Trilogy - 17 Oscars, 13 Baftas, 4 Golden Globes wWhale Rider wThe Fastest Indian wThe Piano wHercules wZena wChronicles of Narnia wKing Kong

INVESTMENT IN NEW ZEALAND wCost effective locations vs. California wCreativity special effects – Weta Studios wEmployment – lack of demarcation wDisney in Auckland – close to home

INVESTMENT IN NEW ZEALAND wPrimary produce – Food wSafe, healthy, convenient, disease free wInnovative foods wProduced at lower cost vs. EU wUS based Links Snacks – NZ JV wSK Foods, Groupe Danone, Nestle, Oppienhiemer, Nussui.

INVESTMENT IN NEW ZEALAND wFreight – moving NZ products to the world wDistance is a state of mind – no longer a barrier to a great idea wSophisticated networks to shift product wIzard Manufacturing – Sandvik saw blades

INVESTMENT IN NEW ZEALAND New Zealand – A Tax Haven wNZ Trusts wQualifying, Foreign, Non – Qualifying wNon-residents settle NZ qualifying trust wOwns assets situated outside NZ wNo tax payable in NZ, income or CGT. wStable government, subject to NZ laws, lower compliance costs, no corruption, ease of doing business