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An Offshore Finance Company is registered
to accept deposits from independent investors
residing offshore from New Zealand. These funds
can be either invested inside New Zealand for
interest rates of between 7.75% - 10.5%, or
lent offshore. Depositors would be paid a lesser
rate which would provide a profit margin for
the Offshore Finance Company. This company enables
a low rate levy (tax) of 2% to be deducted on
interest paid to non-residents. This is the
“Approved Issuer Levy”, scheme. The financial
arrangement must be a security which is registered
with the New Zealand Revenue. This is the attractive
alternative to the normal non resident withholding
tax of between 10% and 15% which would otherwise
apply. Click
here to read more about New Zealand Offshore
Finance Companies on NZ Securities |