Opposition asks for the decrease of corporate tax in New Zealand

05.08.2014

 New Zealand’s main opposition party, “ACT Party”, introduced its plan on improvement of country’s economy. The main goal is to increase country’s GDP on one third.

The only right way to achieve this goal, in party’s opinion, is a decrease of corporate tax from 28% to 12,5%.

Leader of the party, Jamie Whyte, stresses that taxation plays the important role in the country’s economy. It does not only provide the transfer of money from taxpayer to the treasury, but also, if it done correctly, it creates the attractiveness for investments and new jobs.

Source: http://www.act.org.nz/posts/act-proposes-to-increase-gdp-growth-by-one-third

Expert’s opinion

High level of corporate tax does not seem to add up to New Zealand’s attractiveness as investment jurisdiction. Therefore the course on its decrease was, undoubtedly, chosen right.

Nonetheless, there is already possibility to establish business without paying 28% of tax in New Zealand. So called New Zealand trust is exempted from taxation if there is a non-resident as a founder.

Anna Shevchenko ( Lawyer, Honest & Bright)