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.”

The Asia-Pacific Economic Co-operation (APEC) is most likely going to be based around the current economic situation of the world and the possible responses of all countries involved in the meeting. If the recently finished G20 summit is any indication, the economic situation will be the primary talking point.

The meeting is attended by 20 world leaders, and over 3600 delegates. Figures show that the trade between APEC countries accounts for almost half of that in the world and nearly 60 percent of the world’s Gross Domestic Product.

John Key is scheduled to meet the Queen of England, and the British Prime minister after the APEC meeting.

The current APEC countries are Australia, Brunei, Canada, Chile, China, Indonesia, Japan, Hong Kong, South Korea, Malaysia, Mexico, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Thailand, the United States and Vietnam. India, Mongolia, Pakistan, Laos, Bangladesh, Colombia and Ecuador are also seeking membership.

India’s third largest bank, the Bank of Baroda, has announced that they will establish a commercial banking wing in New Zealand, with the initial branch being penned for Auckland. It is understood that the bank aims to function as a subsidiary company. Governance will be held by a mix of both local and overseas directors and that a senior executive has already been appointed to head the Auckland branch.

The now retired chairman and director of the Bank of Baroda, Dr Anil Kumar Khandelwal, said in an interview that the expansion into New Zealand was part of the bank’s “Look East Policy”, which sees it expanding and interacting more with other ASEAN nations. He went on to say that the bank has plans to expand into Canada, Kuwait, Mozambique, Qatar, Russia and Saudi Arabia.

India’s third largest bank, the Bank of Baroda, has announced that they will establish a commercial banking wing in New Zealand, with the initial branch being penned for Auckland. It is understood that the bank aims to function as a subsidiary company. Governance will be held by a mix of both local and overseas directors and that a senior executive has already been appointed to head the Auckland branch.

The now retired chairman and director of the Bank of Baroda, Dr Anil Kumar Khandelwal, said in an interview that the expansion into New Zealand was part of the bank’s “Look East Policy”, which sees it expanding and interacting more with other ASEAN nations. He went on to say that the bank has plans to expand into Canada, Kuwait, Mozambique, Qatar, Russia and Saudi Arabia.

Double Taxation agreements prevent the situation of taxation on one income by two countries, through coming to an agreement as to what incomes will be taxed in the country of residence and exempt in the country of occurrence. It also deals with the opposite case where the income will be taxed at the country of occurrence and compensation arises in the country of residence.
Double Taxation also extends to more comprehensive sharing of tax information between tax authorities.

New Zealand currently holds double taxation agreements with the following countries:

Australia
Austria
Belgium
Canada
Chile
China
Czech Republic
Denmark
Fiji
Finland-
France
Germany
India
Indonesia
Ireland
Italy
Japan
Malaysia
Mexico
Norway
Poland
Republic of Korea
Russian Federation
Singapore
South Africa
Spain
Sweden
Switzerland
Taiwan
Thailand
The Netherlands
The Philippines
United Arab Emirates
United Kingdom
United States of America