Reviewed by Bill Anderson, FCCA, Chief Executive Officer of Assetica

Business Valuation for New Zealand Owners Relocating to the UAE

By Bill Anderson, FCCA, Chief Executive Officer — Assetica, Dubai, UAE

Definition: New Zealand does not charge an exit tax on company shares and has no general capital gains tax, so a valuation is not a tax base in the way it is for owners leaving Europe or Australia. New Zealand owners moving to Dubai still need an independent business valuation for a UAE Golden Visa application on the business route, when shares move into a holding company, and when the business is sold.

No exit tax, but the valuation still matters

New Zealand makes leaving simple. The points that need a number are on the UAE side and at the sale.

Tax residency

Inland Revenue treats you as a New Zealand tax resident until you have no permanent place of abode in New Zealand and have been away for more than 325 days in any 12-month period. Until then your worldwide income is taxed there. A dated valuation helps show when value was created.

UAE Golden Visa (AED 2 million)

The business route asks for an independent report showing your own equity is worth at least AED 2 million, about USD 545,000. The report has to isolate your shareholding, net of debt, and be written for the UAE authority.

Moving shares into a holding company

Transferring your New Zealand company under a UAE holding company is a transaction between related parties. It needs a market value that your advisers and the tax authorities in both countries can rely on.

Selling the business

A gain on shares held as a long-term investment is usually not taxed in New Zealand, with exceptions such as shares bought to resell. Either way, the buyer and their funder need a price backed by normalised earnings.

Sources: Inland Revenue: leaving New Zealand · Inland Revenue: New Zealand and UAE tax treaty

How it works

  1. Scoping call: We confirm the purpose, the valuation date, your structure and who will rely on the report, then quote a fixed fee in writing.
  2. Secure document collection: New Zealand financial statements, the share register, shareholder agreements, management accounts and bank statements, plus the UAE licence once it exists.
  3. Valuation and reconciliation: We normalise earnings, apply the methods that fit the business and reconcile them into a supported conclusion.
  4. Signed report: Formatted for its reader, whether that is your home tax adviser or the UAE authority. A standard single-company report typically takes five to seven business days from complete documents.

One value that holds up on both sides of the move

The risk is two reports that disagree: a value used for New Zealand tax that does not match the one in your Golden Visa file. We fix the valuation date, the method and the normalised earnings once, then format the result for each reader. New Zealand and the UAE have a double tax agreement, in force since 2004, which your adviser will apply to the facts. We provide the valuation. We do not give New Zealand tax advice.

Related valuation services

Read the full guide: Moving from New Zealand to Dubai. Business valuation in Dubai · Golden Visa business valuation · Australia business valuation

Frequently Asked Questions

Does New Zealand have an exit tax?

No. New Zealand does not treat leaving the country as a sale of your company shares, and it has no general capital gains tax.

When do I stop being a New Zealand tax resident?

Inland Revenue says you become a non-resident when you have no permanent place of abode in New Zealand and you are away for more than 325 days in any 12-month period. Both tests must be met.

Why do I need a valuation if New Zealand has no exit tax?

For the UAE Golden Visa, which asks for evidence that your equity is worth at least AED 2 million, for any transfer of shares into a holding company, and to price the business when you sell.

Is my New Zealand accountant's valuation accepted for the UAE Golden Visa?

Usually not on its own. The UAE authority handling the application decides what it accepts, and it expects an independent report that isolates your own shareholding, net of debt, and shows it is worth at least AED 2 million. We confirm the current requirements with you at scoping.

How long does the valuation take?

A standard report for a single company typically takes five to seven business days from complete documents. Group structures, several share classes or property holdings take longer, and we agree the timetable at the scoping call.