The new disclosure requirements for New Zealand (NZ)
foreign trusts will come into effect on 30 June 2017 for existing
foreign trusts. New foreign trusts will need to register within 30
days of establishment. Foreign trusts will need to comply with the
registration and filing obligations to qualify for the exemption on
tax for foreign-sourced amounts.
The NZ trust regime is a 'settlor' based regime. This
means that the NZ tax treatment of the trust depends on where the
settlor of the trust is resident. The trust needs at least one NZ
resident trustee and it will not be liable for tax in NZ except in
respect of NZ sourced income, as long as the trust continues to
have no NZ resident settlors. A 'settlor' is defined very
broadly and there are extensive provisions designed to catch
indirect settlements through nominees and by other means.
