WELLINGTON, Feb 18 (Reuters) – New Zealand wants to align tax rates paid by company, individual and trusts to improve the country’s economic performance and is also looking at policies to boost its capital markets, government ministers said on Thursday.
Finance Minister Bill English said his government’s medium-term goal was to have company, trust and top personal rates at the same level, but was looking to see if such a move was affordable and fair.
“Our early advice is that aligning the trust and top personal tax rates is the most important issue,” he told a business group, adding that substantial gains could be made from this with the company tax rate not too far below.
New Zealand’s top income tax rate is currently 38 percent, trusts tax 33 percent, and corporate tax 30 percent.
He said the government had not decided whether to change the current corporate rate, which needed to be competitive internationally.