Investing means make your money functional for you basically when you invest in stocks. When most of New Zealanders invest in high dividend paying stocks, their objective is to protect their investments against inflation and grow their capital for use in retirement age. One thing makes this challenging is that investment offering a high degree of certainty and stability in value such as cash and term deposits struggle to beat inflation after tax has been taken into account.
New Zealand offers a favorable tax environment for investors' earnings and assets - the most attractive of all 27 OECD countries, according to research by Professor Rob Salmond of the University of Michigan.
Key features of New Zealand's tax system are: