Super Yacht Tax Exemption Benefits New Zealand's Economy

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

13 December 2002

Executive Director of New Zealand's Marine Export Group, Lane Finley announced on Wednesday that the tax exemptions for super yacht crews which came into effect in May have attracted a great deal of extra business to the country which would otherwise have gone to Australia.

Under the new rules, the crews of super yachts (vessels measuring more than 24 metres in length) are exempted from income tax as long as they do not spend more than 365 days in the country over a two-year period.

Speaking to national news service, Stuff.co.nz, Mr Finley explained that:

'It is hard to put an exact figure on it as each yacht spends different amounts but with 120 boats here it could be in the $70 to $80 million range.'

He continued: 'These exemptions had to happen as we were losing so much business and were the laughing stock of the Australian marine industry. But since the exemptions came into place last May the Kiwi economy has benefited by gaining significant revenue which included $3.5 million spent by three or four super yachts alone.'

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