• Skip to content
  • Skip to navigation
Global site
  • Global site
  • Algeria
  • Botswana
  • Cameroon
  • Egypt
  • Ethiopia
  • Gabon
  • Guinea
  • Kenya
  • Libya
  • Malawi
  • Mauritius
  • Morocco
  • Nigeria
  • Namibia
  • Senegal
  • South Africa
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe
  • Anguilla
  • Antigua
  • Argentina
  • Aruba, Bonaire, Curacao and St. Maarten
  • Bahamas
  • Barbados
  • Bolivia
  • Brazil
  • British Virgin Islands
  • Canada LLP
  • Canada RCGT
  • Cayman Islands
  • Chile
  • Colombia
  • Costa Rica
  • Dominica
  • Ecuador
  • El Salvador
  • Grenada
  • Guatemala
  • Honduras
  • Mexico
  • Montserrat
  • Nicaragua
  • Panama
  • Paraguay
  • Peru
  • Puerto Rico
  • St Kitts
  • St Lucia
  • St Vincent and the Grenadines
  • Trinidad & Tobago
  • United States
  • Uruguay
  • Venezuela
  • Turks & Caicos
  • Afghanistan
  • Australia
  • Bangladesh
  • Cambodia
  • China
  • Hong Kong
  • India
  • Indonesia
  • Japan
  • Korea
  • Malaysia
  • Mongolia
  • Myanmar
  • New Zealand
  • Pakistan
  • Philippines
  • Singapore
  • Taiwan
  • Thailand
  • Vietnam
  • Albania
  • Armenia
  • Austria
  • Azerbaijan
  • Belarus
  • Belgium
  • Bosnia and Herzegovina
  • Bulgaria
  • Channel Islands
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Gibraltar
  • Greece
  • Hungary
  • Iceland
  • Ireland
  • Isle of Man
  • Israel
  • Italy - Bernoni
  • Italy - Ria
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liechtenstein
  • Lithuania
  • Luxembourg
  • Macedonia
  • Malta
  • Moldova
  • Monaco
  • Netherlands
  • Northern Ireland
  • Norway
  • Poland
  • Portugal
  • Romania
  • Russia
  • Serbia
  • Slovak Republic
  • Slovenia
  • Spain
  • Sweden
  • Switzerland
  • Tajikistan
  • Turkey
  • Ukraine
  • UK
  • Uzbekistan
  • Bahrain
  • Egypt
  • Jordan
  • Kuwait
  • Oman
  • Qatar
  • Saudi Arabia
  • United Arab Emirates
  • Yemen
  • Lebanon
Grant Thorton Logo

Grant Thornton Logo Grant Thornton logo

  • Meet our people
  • Insights
  • Services
  • Industries
  • Careers
  • Locations
  • Business advisory services
  • Financial advisory services
  • Tax
  • Audit
  • Operational advisory
Business advisory services Home
  • NZTE support for businesses impacted by COVID-19
Financial advisory services Home
  • Asia Services Group
  • Business valuations
  • Capital markets
  • Complex and international services
  • Corporate insolvency
  • Debt advisory
  • Expert witness
  • Financial models
  • Forensic and investigation services
  • Independent business review
  • IT forensics
  • Mergers and acquisitions
  • Raising finance
  • Relationship property services
  • Restructuring and turnaround
  • Transaction advisory
Tax Home
  • Corporate tax
  • Employment tax
  • Global mobility services
  • GST
  • International tax
  • Research and Development
  • Tax compliance
  • Transfer pricing
Audit Home
  • Audit methodology
  • Audit technology
  • Financial reporting advisory
Operational advisory Home
  • Business architecture
  • Internal audit
  • IT advisory
  • IT privacy and security
  • PCI DSS
  • Process improvement
  • Procurement/supply chain
  • Project assurance
  • Risk management
  • Robotic process automation (RPA)
  • Energy and resources
  • Financial services
  • Food and beverage
  • Health and aged care
  • Media and entertainment
  • Not for profit
  • Professional services
  • Public sector
  • Real estate and construction
  1. Grant Thornton New Zealand
  2. Press releases
  3. 2014
  4. New Zealand’s tax system second most competitive in the world

New Zealand’s tax system second most competitive in the world

08 Oct 2014
  • 2014

Findings that New Zealand’s tax system is the second most competitive of all 34 OECD countries reflect changes that should be promoted more internationally, says Greg Thompson, Partner and National Director, Tax at Grant Thornton New Zealand.

The Tax Foundation’s International Tax Competitiveness Index ranks tax systems on the basis of low tax burdens on business investment and neutrality through a well-structured tax code.

The only country found to have a tax system more competitive than New Zealand is Estonia which has a 21% corporate tax rate, no double taxation on dividend income, a nearly flat 21% income tax rate, and a property tax that taxes only land (not buildings and structures).

France’s tax system is least competitive with one of the highest corporate tax rates in the OECD (34.4%), high property taxes that include an annual wealth tax, and high, progressive individual taxes that also apply to capital gains and dividend income.

Australia’s system is ranked the fifth most competitive.

A report on the findings says they reflect New Zealand’s reaction to concerns raised in 2010 that global trends in corporate and personal taxes were making this country’s system less competitive internationally.

“In response to these global trends, New Zealand cut its top marginal income tax rate from 38%to 33%, shifted to a greater reliance on the goods and services tax, and cut their corporate tax rate to 28% from 30%,” the report says.

Greg Thompson says other factors such as no inheritance tax, no general capital gains tax and no payroll tax means New Zealand has a system that can be promoted internationally as simple and fair.

“In the global marketplace companies move some or all of their operations to parts of the world where it is most economic for them to be.

“In the past week ANZ has announced that it is moving a small number of jobs from New Zealand to India. This is against a background of ANZ on-shoring over 350 jobs to New Zealand in recent years. We have also seen companies in the Northern Hemisphere move elements of their business, such as their call centres, to New Zealand.

“In this type of global business environment, New Zealand should be taking these latest findings and saying to businesses worldwide ‘we have a tax system that is simple and fair, and it can only be beaten by one other OECD country’.     

“It’s a simple message that could have a significant impact.”

The Tax Foundation’s findings are consistent with the latest Grant Thornton International Business Report survey which has found New Zealand small to medium enterprises (SMEs) are extremely comfortable with New Zealand tax policy and their tax risk.

Further enquiries, please contact:

Greg Thompson
Partner and National Director, Tax
Grant Thornton New Zealand
T +64 (0)4 495 3775
M +64 (0)21 281 7332
E greg.thompson@nz.gt.com

  • Follow us on Instagram
  • LinkedIn icon
  • Twitter icon
  • Facebook icon
CONNECTclose
  • Contact us
  • Make an enquiry/submit an RFP
  • Meet our people
  • Careers
  • Alumni
  • Locations
ABOUTclose
  • About Grant Thornton
  • Insights
  • Press
LEGALclose
  • Privacy
  • Disclaimer
  • Sitemap

© 2021 Grant Thornton International Ltd (GTIL) - All rights reserved. "Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

    • EN