Comparison of Trust Jurisdictions

As an accounting and taxation firm specializing in providing ongoing services to international clients operating New Zealand business entities on the international marker, we are often asked to offer our insight into the benefits of New Zealand Foreign Trusts over other similar business structures that are available in different jurisdictions. We believe that a New Zealand Foreign Trust can be a perfect solution for the requirements of many clients but, understandably, each business situation holds its own intricacies, and without consulting with the client we cannot issue absolute advice, but this table should give a reader some indication of the potential benefits of using a New Zealand Foreign Trust.

 

New Zealand

British Virgin Islands
Jersey

OECD member nation

Yes No No

Onshore jurisdiction, which never was blacklisted (greylisted)

Yes No No

Government approval

Not required In some cases In some cases

Public registration

No No No

Government fees

None None None

Trust duty

None $100 None

Taxation

A New Zealand Trust which is settled by a non resident is not subject to New Zealand tax, except on incomes derived in New Zealand. A BVI Trust which is settled by a non resident is not subject to BVI tax, except on incomes derived in BVI. A Jersey Trust which is settled by a non resident is not subject to Jersey tax, except on incomes derived in Jersey.

Number of Trustees

One trustee min One trustee min One trustee min

Resident Trustee required

Yes Yes Yes

Provision for a specialised Custodian Trustee

Yes No No

Provision for a specialised Managing Trustee

Yes No No

Provision for a specialised Managing Trustee

Yes No No

Protectors permitted

Yes Yes Yes

Trustees required to keep records and accounts

Yes Yes Yes

Trustee should hold annual meeting

At least once a year At least once a year At least once a year

Private trustee company

Yes Some restrictions Some restrictions

Provisions for Trading Trusts

Yes. The Trustee Company can participate in trading operations for and on behalf of the Trust, with the same tax advantages as the Trust No No

At Abaconda Management Group we assist clients during every step of establishing a New Zealand Foreign trust. We can consult clients on their particular business situation, and how a New Zealand Foreign Trust can be optimally used to meet their requirements. We offer assistance in all the initial steps of establishing a trust, and follow through with ongoing accounting, taxation and maintenance services.

Our services are provided on an “as needed” basis, and our packages can be tailored to utilizes all the unique features of New Zealand legislations. We also can provide professional New Zealand resident Trustee services.

July 6th, 2011