INVESTMENT CONSIDERATIONS

GOVERNMENT POLICY

The Government of Niue welcomes foreign investment and wishes to extend an invitation for all to consider the investment opportunities that are available in Niue.

It is the primary aim of the Government of Niue to improve its capacity towards self-sufficiency through maximum use of the limited resources the country is endowed with as well as those other resources that are accessible. Government policy is to support, within reason, any overseas investment proposal which could provide employment for local people, increase opportunities for import substitution and reduce the trade deficit.

Priority will be given to investment proposals that directly or indirectly contribute to the National Development Goal and Objectives as set out in the Niue Integrated Action Plan, 1999 - 2002. Proposals relating to tourism are of particular interest to the Government. However, priority will also be given to the projects and proposals which emphasise skills and technical transfers to local Niueans, and investments which make provisions for local ownership. Any forms of investment for example, sole ownership, corporate or joint venture will be considered.

RESTRICTIONS ON FOREIGN INVESTMENT

Depending on their nationality, there may be restrictions on entry of skilled workers. All Niueans are New Zealand citizens therefore entry of New Zealand citizens is not restricted. Other nationalities may require a visa or permit.

There is currently no company legislation in Niue, however companies can be registered in NZ under the NZ companies Act 1955.

There are very few restrictions on raw material imports. The main restriction is related to the importation of plants and animals, where investment approval is needed. The only limitations on imports into Niue are those contained in the liquor and firearms legislation or quarantine and health requirements.

There is no excise legislation. Clearances of goods from customs follow normal procedures. Completed import entries should be lodged with Customs prior to release of goods. An application for exemption of duties can be lodged with Cabinet if this is seen as necessary by an investor.

TRANSFER OF CAPITAL AND PROFITS

There are no limitations on capital/profit transfers. The New Zealand Dollar (NZ$) is legal tender.

TAXATION

Niue has a very simple tax system with taxes on both companies and employees.

Both resident and no-resident company rate of 30 percent For individuals taxation is on a sliding scale from a minimum rate of 10 percent to a maximum of 50 percent. Same tax rates apply to residents and non-residents respectively:

INVESTMENT PROTECTION

Although the Arbitration Act 1908 (NZ) is applicable to Niuean land, there is no mention in the Development Investment Act 1992 to arbitration on any dispute that may arise. Any dispute can be referred to the court of law. There is no provision, which would prohibit the resolution of dispute by arbitration - thus any two parties may by agreement choose arbitration as the method of resolving differences.

INVESTMENT INCENTIVES

The Government of NIUE is extremely interested in attracting foreign investment. NIUE Investment & Promotion Committee and Cabinet will consider and support proposals and applications that will benefit NIUE as a country. A current program aims to encourage the tourism industry, with the initial aim of fully utilising seating capacity on current weekly flights with Royal Tongan Airlines.

To receive investment incentives and concessions the proposal must be commercially viable, provide for employment and training of local Niueans and residents to the fullest extent possible and have a positive economic impact on Niue.

CONTACTS FOR FURTHER INFORMATION