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Speaker 1: Some more new tax treatment out of Thursday's budget to

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Speaker 1: help business. Foreign owned businesses, we'll be able to fund

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Speaker 1: a bigger chunk of their investments here through tax deductible debt.

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Speaker 1: There's also a tax treatment tweak on employee share schemes,

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Speaker 1: Queen city laws. Marcus Beverage specializes and all this sort

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Speaker 1: of thing, and he's with us, Marcus morning to you,

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Speaker 1: what do you make money? Small numbers doesn't change. Does

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Speaker 1: it move the needle? Or are we just a bit

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Speaker 1: grateful for doing anything?

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Speaker 2: A bit of both. I think it's signals that we're

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Speaker 2: very much open for business, and it's sort of go west,

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Speaker 2: young man, and there's golden them beyonder hills. And we

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Speaker 2: want to encourage foreign investment and get some of the

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Speaker 2: big infrastructure projects moving. And to do that we're saying

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Speaker 2: yes makes Essentially, with the thin capitals, you can set

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Speaker 2: up holding company offshore and have a debt between the

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Speaker 2: companies and therefore make less profit in New Zealand. So

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Speaker 2: we're saying, yes, we'll bend over, We'll let you make

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Speaker 2: less profit here, but please bring your funds in.

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Speaker 1: Does everybody do this globally?

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Speaker 2: I'm not one hundred percent sure about that, but it's

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Speaker 2: generally they're based. The thin cap rules are harmonized between

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Speaker 2: most Western jurisdictions. There is a bit of a catch

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Speaker 2: me if you can, mentality in parts of Asia compared

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Speaker 2: to the compliant sort of companies out of more of

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Speaker 2: the Anglo Saxon jurisdictions. But yeah, it's always been there.

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Speaker 2: It's a legitimate way of lessening the text burden, similar

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Speaker 2: to the film stuff that they've done recently. So we're saying,

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Speaker 2: come in, we'll let you pay this tax. So obviously

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Speaker 2: the government's listening to the top end of town.

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Speaker 1: The startup thing, I'm assuming it's for startups. You give

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Speaker 1: me a slice of the action instead of paying me

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Speaker 1: because you haven't got any cash. Is that a big deal?

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Speaker 1: Will that mean more startups or just easier for those

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Speaker 1: who already started up?

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Speaker 2: That's more to do it. Like with the employees, we

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Speaker 2: won't wake you for the tax that you've made for

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Speaker 2: you for your big payout. So it's a bit like

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Speaker 2: the business migration. I mean, that's the good news. At

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Speaker 2: the moment. We've had six hundred mem then committed here

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Speaker 2: in one month, and that could extrapolate that out over

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Speaker 2: a year, it's over six billion dollars worth of money

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Speaker 2: coming in for those people. Of course, they don't need

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Speaker 2: to be tax residents of New Zealand unlike the USA folk,

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Speaker 2: and they actually get a four year grace period on

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Speaker 2: their worldwide tax income. So that's just saying it's like

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Speaker 2: the changes to the fire for rules. If you haven't

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Speaker 2: actually realized any profit, you haven't sold anything, so you've

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Speaker 2: only got paper money, we won't tax you on.

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Speaker 1: That makes perfect sense. I've started in the Prime Minister

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Speaker 1: yesterday about the Golden Visa and the foreign Are we

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Speaker 1: pulling all the levers here, Marcus? Are we doing all

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Speaker 1: we reasonably we can to get our act together.

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Speaker 2: Well, we're trying to get rid of roadblocks. We're halfway

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Speaker 2: through this term. To me, it's sort of underwhelming, and

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Speaker 2: you know, once it needs to get out of the

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Speaker 2: way and we need to really fire up and get

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Speaker 2: rid of roadblocks. So that's sort of where the rubber

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Speaker 2: hits the road. It really makes and I think, to me,

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Speaker 2: it's underwhelming to be a year and a half through,

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Speaker 2: you know, election cycle, to kind of be tweaking stuff

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Speaker 2: at this stage. I think they could have done a

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Speaker 2: lot better, like our friend Donald Trump, you know, issuing

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Speaker 2: edicts from day one, this has been cumbersome and slow.

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Speaker 1: Doge to the place, Marcus, appreciate your insight. Marcus beveragequen

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Speaker 1: City Law Managing Director. As I've said a million times

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Speaker 1: on this program, that's the sort of view I get

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Speaker 1: a lot from business in this country. And when the

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Speaker 1: planners were sitting on this program, in this very studio

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Speaker 1: yesterday saying we're a new government, I said, no, you're not.

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Speaker 1: You're a year and a half in and we could

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Speaker 1: have done so much more.

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Speaker 2: For more from the Mic Asking Breakfast, listen live to

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Speaker 2: news talks.

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Speaker 1: It'd be from six am weekdays, or follow the podcast

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Speaker 1: on iHeartRadio