Monthly Archives May 2010

Top Tax Rate to be Cut Significantly

May 17, 2010 New Zealand Taxation

WN 10-0084-055Prime Minister John Key has given strong indication that top-marginal personal tax rates will be significantly cut in the upcoming Government Budget. He justified the decision by claiming it will decrease the “brain drain” seen in New Zealand.

On May 17th John Key, Prime Minister of New Zealand, appeared in a television interview and made it clear that the upcoming budget will feature cuts to personal taxes across all levels, but with special emphasis on top-marginal rates. John Key’s comments led economist to believe that the anticipated increase in Goods and Service Tax (GST) will also be announced within the Budget, to offset the decreased tax personal tax revenues.

When questioned on the fairness of increased tax cuts for high earners, John Key claimed that the move was vital fo...

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NZ Singapore Tax Agreement Progresses

May 14, 2010 International TaxationNew Zealand Taxation

IMG_5926The Double Taxation Agreement (DTA) between New Zealand and Singapore has come one step closer to enactment, having now been incorporated into New Zealand law.

On May 12th the New Zealand Government announced the signing of an Order in Council for the DTA between New Zealand and Singapore. The signing of the Order officially incorporates the agreement into national legislation. According to Peter Dunne, New Zealand Revenue Minister, the DTA will come into effect when the equivalent legal ratification process is carried out by the Government of Singapore.

The new agreement is intended to replace the DTA signed by Singapore and New Zealand in 1973. The DTA will lower withholding rates on dividends, royalties and interest...

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OECD Nation tax Burden Falling

May 12, 2010 New Zealand Taxation

Four more countries commit to OECD tax standardsThe Organization for Economic Cooperation and Development (OECD) recently published new data cataloging personal taxation burdens of tax payers in member nations. The release shows that New Zealanders are faced with one of the lowest overall tax burdens in the OECD.

On May 11th the OECD publicized its latest Taxing Wages data, an annual publication cataloging year-to-year changes in personal taxation burdens among member states. The data concentrates primarily on calculation of nations’ tax wedge levels. For a single earner with no children, New Zealand is shown to hold the second lowest total tax wedge in the OECD, at a level of 18.4 percent. Mexico is recorded to have the lowest tax wedge, at 15.3 percent. The OECD average tax wedge was shown to be nearly 36.4 percent...

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NZ Tax Reform Proposal Released

May 10, 2010 New Zealand Taxation

2007 California Corporate Tax, shows penaltyA new report has been released proposing a raft of changes to the New Zealand tax system, suggesting heavy cuts to many forms of taxation, and significant decreases to Government spending. The report is accompanied by a national survey profiling New Zealander’s acceptance of possible changes to taxation.

On May 10th the Maxim Institute released Lifting the Bucket: Tax policy and economic growth, a report detailing the Institute’s proposed changes to the New Zealand economy. The report was accompanied by the results of a survey profiling national tax payer’s opinions regarding taxation levels and Government spending on public projects...

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