New Zealand Tax System Ranked 27th

November 18, 2011 New Zealand Taxation

CoinsThe New Zealand tax system has been rated as the 27th best in the world for its ease of compliance.

Last week the international professional services firm PricewaterhouseCoopers released a new study ranking the tax burdens and ease of paying taxes in countries across the world. In the report New Zealand was ranked as the 27th highest in regards to the efficiency of its tax system.

The research compared the tax systems of 183 different countries, inspecting the burdens faced by medium sized businesses in the respective country. Specifically, the study looked at the number of tax payments faced by an average business, the time it would take for a representative business to comply with its tax obligations, and the total tax rate a company would face.

New Zealand was regarded as having 8 taxes that a typical medium would have to comply with, ranking as the 17th lowest number in the world. In total the taxes would see an enterprise pay a tax obligation of approximately 34.4 percent, which is the 65th lowest level in the world. In total, a New Zealand business would require approximately 172 per year to comply with its tax obligations, ranking the country 58th in the world for compliance time.

According to Geoff Nightingale, tax partner at PwC New Zealand, the long compliance time can be attributed to businesses’ Goods and Service (GST) filing requirements. He added that New Zealand also suffers from a set of complex laws regarding international business, especially for local companies wishing to expand overseas. However, the New Zealand government was also judged as actively taking steps to improve the ease of compliance, and increasing the accessibility to electronic filing methods.

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