NZ Has 7th Highest Corporate Tax Rate

October 23, 2009 International TaxationNew Zealand Taxation

According to a KPMG survey, New Zealand has the seventh highest corporate tax rate in the OECD.

The KPMG 2009 Corporate and Indirect Tax Rate Survey, which investigates the corporate and indirect tax rates of the OECD for the 2009 year, has found that New Zealand holds the seventh highest corporate tax and one of the lowest indirect tax rates of the nations surveyed.

Ireland and Iceland had the lowest corporate tax rates in the survey, with 12.5% and 15% respectively. While New Zealand’s rate of 30% was rated 7th, with USA and Japan reigning the top spots at rates of 40% and 40.69% respectively.

The survey found that New Zealand holds the sixth lowest indirect tax rate in the world, with its 12.5% GST rate. Canada meanwhile has the lowest rate at 5%, and Denmark was the highest at 25%.

According to the survey, global governments are increasingly more reliant on indirect taxes for income procurement. Paul Dunne, KPMG Senior Tax Partner, commenting on the global levels of indirect taxes said “However, rate increases increase prices for consumers. For this reason GST rate increases quickly become political and therefore if considered in New Zealand should be thought of as part of a broad package of measures.”