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Speaker 1: Right. The government's proposing tax changes to make things easier

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Speaker 1: for foreign investors starting new businesses in New Zealand. So

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Speaker 1: countless tech companies choose to leave early into their business

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Speaker 1: life or they relocate to start in the first place

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Speaker 1: because they feel that conditions are better overseas and there's

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Speaker 1: more chance for growth. So these changes I hope to

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Speaker 1: make it easier for them to start up, but they're

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Speaker 1: most critically to stay and then grow. So Phase one

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Speaker 1: Ventures CEO Mahesh modernly Da is joining me this morning,

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Speaker 1: Helen Mahet, Good morning, Andrew. So how will these changes

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Speaker 1: help tech startups like yourself?

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Speaker 2: Yeah, So the change is that Revenue Minister from what

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Speaker 2: has suggested is a change on rules that allow foreigners

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Speaker 2: to come in and also returning quees like myself to

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Speaker 2: come back home and make sure that out the unrealized

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Speaker 2: assets it overseas aren't taxed. So in Australia, US, United Kingdom,

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Speaker 2: Hong Kong, Singapore, when someone has unrealized gains like equity

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Speaker 2: in a startup, equity in your startup that you built,

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Speaker 2: it doesn't get tacked until it's realized. In New Zealand

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Speaker 2: right now, it gets packed even if it's not liquid.

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Speaker 2: This prevents people who've done these school things and have

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Speaker 2: all of these skills from coming to New Zealand or

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Speaker 2: coming back home returning quies too, because they're going to

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Speaker 2: get tacked on cash that they don't have.

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Speaker 1: Of course, there's a bit of a no brainer. Really,

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Speaker 1: you can't get text until you're making a profit. Meanwhile,

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Speaker 1: you're trying to finance yourself and keep yourself going while

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Speaker 1: you build the business. So that's a good thing. But

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Speaker 1: is there anything they missed? Would you have liked to

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Speaker 1: have seen more in the announcement?

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Speaker 2: So I think there's an opportunity to no. I think

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Speaker 2: first of all, this is fantastic, right, like we're coming

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Speaker 2: up to turn with international based practice. One of the

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Speaker 2: biggest reasons I was one of the first guys at Canvas.

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Speaker 2: One of the biggest benefits for us at Camera at

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Speaker 2: Sydney was when Google Sydney set up shop in Sydney,

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Speaker 2: and they wouldn't have set up shop if they had

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Speaker 2: these kind of rules. So this allows for overseas investment

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Speaker 2: to come in, stay and go, and then it's that

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Speaker 2: skills transfer from these people to our entrepreners who are

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Speaker 2: trying to do stuff and scale. There's an opportunity to

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Speaker 2: consider if we can extend this to everyone, so it

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Speaker 2: allows more and more FEU to look up and start

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Speaker 2: investing and playing a global game, which is nearly the

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Speaker 2: number one thing we have to do to become more productive.

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Speaker 2: And finally, just set this up with international standards.

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Speaker 1: Yes, well, you've talked about how you've come back to

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Speaker 1: New Zealand and about how other New Zealand entrepreneurs have

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Speaker 1: come back because you have faith in the country, and

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Speaker 1: now you've got some rules that are going to help

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Speaker 1: you as well. But what I want to know is

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Speaker 1: how common it is for companies to actually leave New

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Speaker 1: Zealand having done the hard yards, having started up, but

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Speaker 1: then leave because of the foreign Investment fund rules as

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Speaker 1: they stand.

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Speaker 2: Yeah, so why do why do companies leave? Companies leave

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Speaker 2: because one they want to get talent from overseas and

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Speaker 2: two because they want to access capital. Look, the largest

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Speaker 2: capital market in the world easily and the best is

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Speaker 2: the US. There are so many Americans who want to

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Speaker 2: be in New Zealand. So can we get more of

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Speaker 2: our tech companies staying here for their first four to

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Speaker 2: five years and once you stay four to five years.

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Speaker 2: You're you're locked in, right, so will they will there

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Speaker 2: their chance that they belonging. Yes, an opportunity for the

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Speaker 2: government to extend things further, and financialist nicols to talk

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Speaker 2: about this is reducing corporate tax, but not that alone.

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Speaker 2: Maybe even reduce income from your first over these five

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Speaker 2: hundred thousand dollars made overseas or something along those lines,

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Speaker 2: which then trigger entrepreneurs to like, make that overseas dollars

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Speaker 2: stay here longer.

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Speaker 1: I thank you so much for your time today, Mahesh Morerida,

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Speaker 1: who is Phase one Ventures CEO.

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