New Zealand retains 22nd ranking in ease of paying taxes

New Zealand retains 22nd ranking in ease of paying taxes

New Zealand has retained its 22nd ranking out of 189 economies in its ease of paying taxes, according to Paying Taxes 2016, now in its tenth edition. The unique study by PwC and the World Bank Group is the only piece of research which measures the ease of paying taxes by assessing time required for a case study company to: prepare, file and pay its taxes, the number of taxes that it has to pay, the method of that payment and the total tax liability as a percentage of its commercial profits.

PwC’s Tax and Private Business Leader Geof Nightingale says, “New Zealand’s 22nd placing for a second year is a reflection of our country’s consistent approach to tax policy, with no radical shifts having occurred in the way New Zealanders pay tax or in the way in which it’s administered in the last year.

“Inland Revenue’s (IR) business transformation project will be key to making paying taxes easier in the future and is on the right trajectory, remaining a key priority for IR.

“New Zealand wants to compete on the world stage and in the global economy, so our own systems and processes must continue to be world-leading. Transforming New Zealand’s tax administration system will be crucial to ensuring we remain a country that is easy for businesses to operate in and pay tax,” says Mr Nightingale.

New Zealand has remained on 22nd place from last year’s study, and ranked behind Singapore who came in at 5th (who retained its 5th rank) and the 15th ranked UK (who have moved up a place), yet ahead of most other major trading partners including Australia at 42nd (and who interestingly have decreased from 39th), the US at 53rd (decreasing from 47th) and Japan and China, on 121st (last year 122nd) and 132nd (last year 120th).

ENDS

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