Brahma Sharma the Partner in Charge of tax at KPMG has said:
Braham Sharma, senior tax partner at KPMG, said the New Zealand business tax rate was now well above the average 29.99 per cent across the Asia-Pacific region and the 30 per cent rate in Australia.
Companies looking to invest in other countries looked first at headline corporate tax rates and then to investment and tax incentives, such as tax holidays and accelerated depreciation provisions, he said.
Generally, New Zealand did not offer incentives and its tax rate was relatively high, which put it behind other countries looking to invest here, he said.
This comes after KPMG’s recently release global tax survey.
What I find interesting about this story is that KPMG has of late been seeking more publicity. Murray Sarelius published an article in the NZ Herald last week on the how the new tax rules will affect international expatriates. KPMG seem to shy away from publicity and it is usually PWC’s tax partner John Shewan who is quoted. It will be interesting to see if the trend continues, or if theses were two one off events.