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It's easy to pay company tax in NZ: PwC

At least it's easy for companies to hand over hard-earned income to the taxman.

New Zealand has ranked 22nd out of 189 countries when it comes to how easy it is to pay company tax according to the 10th annual Paying Taxes 2016 report by Pricewaterhouse Cooper and World Bank Group.

Countries are assessed on the time a company takes to prepare, file and pay its taxes, the number of taxes that it has to pay, the method of payment and the total tax liability as a percentage of its commercial profits.

It is the second consecutive year New Zealand has ranked 22nd, with PwC tax and private business leader Geof Nightingale citing the country's consistent to tax policy for the steady result.

He said there had been "no radical shifts having occurred in the way New Zealanders pay tax or in the way in which it's administered in the last year".

But, there is still work to be done.

"Inland Revenues (IR) business transformation project will be key to making paying taxes easier in the future and is on the right trajectory, remaining a key priority for IR."

"Transforming New Zealand's tax administration system will be crucial to ensuring we remain a country that is easy for businesses to operate in and pay tax."

Against its major trading partners, New Zealand is ranked behind Singapore (fifth) and the United Kingdom (15th) but ahead of Australia (42nd), the US (53rd), Japan (121st) and China (132nd).

Qatar and the United Arab Emirates were ranked the easiest countries to pay tax while Bolivia is the hardest.

BEST AND WORST PLACES FOR EASE OF PAYING TAX

BEST

=1. Qatar and United Arab Emirates

3. Saudi Arabia

4. Hong Kong

5. Singapore

WORST

189. Bolivia

188. Venezuela

187. Mauritania

186. Chad

185. Central African Republic

Source: Pricewaterhouse Cooper and World Bank Group

Source: 1 NEWS


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