New Zealand’s corporate tax rate evades global gravitational forces
Budget 2017 focuses on a social cohesion and resilience dividend
Budget 2017 bucked the global trend of chasing headline corporate tax rates down to attract and retain capital and labour.
Deloitte CEO Thomas Pippos said it’s about standing back and looking at the total picture.
“At a simplistic level, business nirvana may include lower corporate tax rates that mirror global trends, but social cohesion and resilience was the dividend they were offered today,” said Mr Pippos.
“There is no doubt however, that with the passage of time and assuming we don’t face future shocks, that all tax rates will be heading down under the current Government. It’s just maths,” he said.
In terms of wider business friendly initiatives in Budget 2017, Pippos said the ongoing issues around black hole expenditure and in particular feasibility expenditure were earmarked to be addressed.
“Probably more importantly, corporates and multi nationals were not vilified, nor were there any precipitous or populous measures sought to be introduced outside of pre-existing base erosion and profit shifting (BEPS) workstreams,” said Mr Pippos.
For more commentary and analysis from Deloitte on today’s Budget announcement go to www.deloitte.com/nz/2017budget