Do you have your NZ business now? Could you run your UK/USA business from here instead?

[Daniel Hutt]

Hey guys

New user here so we dont want to spam etc

We are UK citizens, living in NZ now for 3+ years. We have 2 businesses, one of which is a digital marketing company that works with clients internationally.

We also have a few friends locally who are ex pats from USA/Canada who actually run their businesses still from here, and make the most of the larger markets, established business and exchange rate from back home.

I know with a lot of people reading this, you are possibly thinking of moving your business with you, but have you looked into the possibility of keeping your business at home whilst living and paying tax here?

You can always run another version of it here, but we find with a little practise and trial and error, you can pretty much run your term internationally.
(Skype is actually a lifesaver)

If anyone has any questions on this or is interest, we are happy to chat

We also run a "Marketing Mondays" over on our site. We get questions sent in over the weekend and answer them over video (Your name not revealed if you wish) to try and help you out

Please do flick us a PM or reply in here, we love helping out!

Dan+ Freyja

[lilie]

Hi Daniel and Freya,

I'm really interested in your post. I used to have my self-employed business as an artist/ graphist design back home. This kind of business is really esay to manage from anywhere in the world with internet and digital technology.

I'vre recently became a NZ resident and my wish is to establish myself here as a sole trade, doing the same kind of activities I was doing overseas. Becoming a sole trade is rather simple here as I don't even have to get a GST registration, etc..

But here is my problem. I haven't shut my oversea company yet because you never know how the residency process could go (and it is so looong). But now I've started to received inquiry for commission work and projects from French companies. The only thing is those company would accept to pay me only on a French account and I would need to provide invoice in euros.
How can I do to work with them (I think it would be stupid to miss job opportunity like that for currency details)?

I really have a hard time to find information about it, ad as my activity hasn't started yet, and would not straight away provide a big enough income, I can't afford to go and see a lawyer/account neither.

As far as I can understand:
- I'm not exempt of taxation as my activity is a good and service activity (to be confirmed, though, but I think so)
- I would have to pay taxes in France, then declare it in NZ, and repay (or not taxes on it)

For the 2nd point, I'm a bit confused as it seems that regarding the currency rates, I can loose a lot of money through this process, and this is going to be a lot of paperwork as France and NZ tax year don't match at all!

I'm looking ideally for a way to declare my revenue only in NZ, with a sole trade activity declare in NZ (as I would proceed the work in NZ anyway, with NZ charges and expenses), providing a NZ invoice with my IRD number but in a foreign currency, and to be pay on a foreign account. Can it be possible?

Any help, tips, or idea would be helpfull.
I have a hard time to believe I can't live in NZ, making money with foreigh company, then using my foreign money to use in NZ (when currency rates are favorable )

cheers

[Super_BQ]

The issue of running a business abroad comes down to taxation and I highly advise to consult with a qualified tax accountant - my words should not be treated as qualified advice. But as far as the business goes, typically, you will end up filing taxes in both countries with accountants in each place. The net result after foreign tax credit, it most often you end up paying more taxes in NZ than say the US or Canada or the UK (because taxes are higher here).

I'm looking ideally for a way to declare my revenue only in NZ, with a sole trade activity declare in NZ (as I would proceed the work in NZ anyway, with NZ charges and expenses), providing a NZ invoice with my IRD number but in a foreign currency, and to be pay on a foreign account. Can it be possible?

Again, seek a tax accountant. I'm quite certain if you conduct business in another country, the tax obligation 1st goes to that country, especially if there's been a sojourn relationship - if you flew to that country and met with client, or even at the personal level where you still own a house, bank account, membership, etc in that country where you started the business. As far as currency goes, this is not an issue.

[lilie]

Hi Super,

Thank you for your reply. I get what you say but don't get how I can then have a tax credit in NZ, it will be based on the currency rates at that precised moment ... and I can loose quite a bit.
On the othjer hand, I never fly back to that country to meet clients as everything is dealt with ny email or skype.. (I'm an illustrator) and apart from a overseas bank account, I own nothing back therer, no property oversea, neither.
I think I have to deal with the doucle taxation and be resigned to see an accountant ..