The corporate tax system in New Zealand is relatively simple and straightforward, with a flat tax rate of 28% for all companies. In addition to income tax, companies are also required to pay GST on most goods and services, and there are import duties that apply to certain goods being imported into the country. However, there are no export duties. The main legislation governing these taxes is the Income Tax Act 2007, the GST Act 1985, and the Customs and Excise Act 2018.
Income tax:
All companies operating in New Zealand are required to pay income tax on their profits. The tax rate for companies is currently 28%. This tax rate has been in place since 2011, and it is regulated by the Income Tax Act 2007.
Tax brackets:
There are no tax brackets for companies in New Zealand. All companies are taxed at the same flat rate of 28%.
Goods and Services Tax (GST):
The GST in New Zealand is a consumption tax that is applied to most goods and services. The current rate of GST is 15%, and it was introduced in 1986. The GST Act 1985 is the legislation that governs the GST in New Zealand.
Sales tax:
New Zealand does not have a sales tax. The GST is the main consumption tax in the country, and it applies to most goods and services.
Import duties:
New Zealand has a range of import duties that apply to certain goods imported into the country. These duties are designed to protect local industries and ensure a level playing field for New Zealand businesses. The rates of import duties vary depending on the type of goods being imported. The Customs and Excise Act 2018 is the legislation that regulates import duties in New Zealand.
Export duties:
New Zealand does not have any export duties. The government has taken a policy stance of promoting exports, and as such, there are no taxes on goods being exported from New Zealand.
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