While a New Zealand Foreign Trust may be used as a zero tax vehicle on its own it is also compatible with New Zealand’s International Double Tax Agreements.

In general New Zealand’s Double Tax Agreements treat a New Zealand Foreign Trust as a New Zealand resident. Therefore a New Zealand Foreign Trust can utilise the benefits of certain Double Tax Agreements.

The practical effects of utilization of Double Tax Agreements are:-

1. A withholding tax is payable only to the country of origin on funds transferred,   

2. Double Tax Agreement use lends a level of simplicity.