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Can NZ family trust own share of company in Australia

Discussion in 'Business & Startup Investing' started by otagomed, 20th Nov, 2009.

  1. otagomed

    otagomed New Member

    Joined:
    15th Nov, 2009
    Posts:
    1
    Location:
    Leongatha, VIC
    Hi, I'm a kiwi and planning to setup a business in Australia.
    Can my NZ family trust own some shares of the business? And what are tax implications in Australia?

    Also can anyone recommend me an accountant who has experiences on Health professionals on East Melbourne or South Gippsland region?

    Thanks for your help.
     
  2. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Yes - the NZ family trust should be able to hold the shares in the Australian company.

    The Australian company should be able to pay unfranked dividends to the NZ family trust with only 15% tax withheld - these will become foreign tax credits for the NZ family trust and available for payment of the trust's tax or able to be distributed with the foreign income to the trusts beneficiaries.

    Sorry - I don't know any accountants in that area.