Doing Business in New Zealand Essay Example | Topics and Well Written Essays - 500 words

Doing Business in New Zealand - Essay Example   However, political stability in New Zealand is comparatively satisfactory for which it has ranked fifth in the world. The country relies on foreign investment inflows and recently the government has reviewed its tax policies and tariff to enhance a favorable environment for international trade. Therefore, despite certain legal constraints, New Zealand offers comparatively favorable environment to new business entrepreneurs. New Zealand’s close traditional relationship with Australia has enabled free movement of both goods and labor. The condition is attributed to the political stability and the traditionally competitive economy.Legal Implications: The regulations associated with food industry include business income tax laws, food hygiene Regulations, and food packaging regulations. 1. Low tariff has become the major facet of business in New Zealand which commenced since 1980 with the unilateral tariff cuts. Since October 2008 a new tariff schedule was introduced which rep laced the tariff on industrial products with three ad valorem rates. In the same way, since the introduction of the Closer Economic Relations Agreement of 1983, the government ceased all duties on goods between New Zealand and Australia. 2. Companies in New Zealand pay income tax on their net profit (at 30%) of each financial year which usually runs from 1st April to 31st March. At the end of the financial year, the company can file a tax return according to which the payment accuracy is calculated.