The importance of setting company tax at the right level has been highlighted in the Government’s response to the Capital Markets Development Taskforce, says BusinessNZ.

Chief Executive Phil O’Reilly says aligning the top personal rate, the trust rate and the company rate is a worthwhile goal, but needs to be balanced with consideration of the comparative situation for company tax.

“The crucial point is that New Zealand’s company tax rate needs to be lower than the company rate in other countries,” Mr O’Reilly said.

“If it is higher than company rates overseas it reduces the competitiveness of New Zealand companies. It also acts as a disincentive for overseas investment into New Zealand businesses.

“New Zealand enterprises will be supportive of the Government’s inclination towards aligning the top personal rate and the trust rate, while considering the company rate in the context of other company rates internationally.”

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