New Zealand Government Considers Tax Breaks To Entice Foreign Workers

by Mary Swire, Tax-News.com, Hong Kong

13 November 2003

New Zealand Revenue Minister Michael Cullen and Associate Revenue Minister David Cunliffe on Tuesday released a discussion document containing proposals for tax breaks aimed at helping firms recruit workers from overseas.

"The idea is to benefit New Zealand businesses recruiting overseas workers," the Ministers explained in a statement. "Reducing some tax costs for those workers will make it more likely that New Zealand businesses can hire the best people for the job, at the right price."

The joint statement continued: "The government is proposing a temporary exemption from New Zealand income tax on the overseas income of people who come here to work as employees, whether they are foreigners or expatriates who have been non-resident for New Zealand tax purposes for ten years."

"It would be targeted at people coming to work as employees, and would not be available to those coming to retire or start up their own businesses."

"Whether it would apply to all income from overseas investments and property or limited to a few types of income is yet to be decided," Dr Cullen and Mr Cunliffe concluded.

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