There is a lot of misinformation and misconception out there about NZ’s tax system, our rates, global competitiveness, competitive advantage etc.
What I will do is post a series of blogs outlining the myth and then give the reality. If people think this is worthwhile, or if you have ideas about other ‘myths’ you would like debunked or explained, please let me know.
Myth 1. New Zealand taxes corporate taxable income at a relatively high rate.
Reality. NZ’s company tax rate is 30%. This is lower than in the US, Japan, Germany, France, Canada, Korea, Italy, Spain, Belgium and Luxembourg. Not small backwater economies.! Its the same as Australia and the UK, and just fractionally above the EU average of 29.4%.
Also remember, we don’t have a capital gains tax, a payroll tax, stamp duty or a transactional tax, like a lot of OECD countries do.
Quite simply, our company tax rate is very competitive and uncomplicated.
Facts source OECD.