How to navigate tax, tariff and GST implications when expanding your business overseas

Eyes on Tax: How to navigate tax, tariff and GST implications when expanding your business overseas

For local New Zealand businesses, international expansion can offer significant opportunities – but also complex challenges. From tariffs and GST to the tax implications that come with operating in overseas territories, there’s a lot to consider.

BDO’s Eyes on Tax team, including Tax Partners Mark Lodder and Iain Craig, and BDO Advisory Partner Divya Pahwa, recently sat down with business journalist Madison Malone to discuss the current conditions for international trade and what New Zealand businesses need to think about when making the leap offshore.

Watch their discussion below:

Keeping up to date with tariffs

While New Zealand can often feel far away from the action, geopolitical issues can have a significant impact on local businesses. In fact, the May 2025 BDO Business Wellbeing Index shows that political factors remain in the top three leading issues for New Zealand business leaders.

Recent tariff announcements from US President Donald Trump - including a 10% additional tariff on New Zealand exports - are reshaping the global trade landscape. With the US as New Zealand’s second-largest export market, these changes carry significant implications.

There are immediate considerations and some long-term considerations when considering these tariffs. Businesses need to look at their supply chains and whether there’s an opportunity to negotiate contracts with suppliers and customers and do detailed analysis and forecasts to understand how they may be impacted,” says Divya Pahwa, BDO Advisory Partner.

Tip: Businesses should ensure they are using the correct HS code when exporting to America and other countries.

Getting to grips with global tax

Expanding your business overseas can open a world of opportunities – and potential tax problems. When establishing in a new territory, there are a range of questions to consider, from the scale and structure of your operation to how you trade in different countries.

Iain Craig, BDO Tax Partner, explains: “The starting point will be working out the legal structure. In New Zealand it’s relatively easy to set up a company, but in overseas jurisdictions, it’s not so easy and it can cost a lot more money to get established properly. It’s important to get it right to begin with, because there will be implications if you don’t – things like capital gains tax and stamp duty on transferring shares. Planning is essential.”

It's also important to be aware of local and international tax rules, including New Zealand’s imputation credit and transfer pricing regimes, when establishing in overseas markets.

Tax and tariff tips when expanding into overseas markets:

Explore concessions and exemptions available to you when exporting overseas, including duty drawbacks.

Consider alternative markets that might not have as much of a tariff impact – including some Asian and European countries that New Zealand has free trade arrangements with.

Structure your business in a tax efficient and compliant way right from day one. This may save you time and money in the long run.

Seeking assistance

Whether you’re a sole trader or multinational, BDO’s nationwide tax experts can help you navigate local and international tax legislation, optimise your structure and meet your compliance obligations. For more, reach out to your BDO adviser or find out more about our tax services here. 

Discover a range of tax topics in our new Taxflix series, covering topics including land sales, tax residency, the trustee tax rate and repairs and maintenance deductibility. Watch all the videos here.