|International Tax Rules||9||85.77|
New Zealand ranks 2nd overall on the 2019 International Tax Competitiveness Index, one spot better than in 2018.
- New Zealand allows corporate losses to be carried forward indefinitely, allowing businesses to be taxed on their average profitability.
- The VAT of 15 percent applies to nearly the entire potential tax base.
- New Zealand property taxes apply just to the value of land rather than real estate or other improvements to the land.
- New Zealand has an above-average corporate tax rate of 28 percent (the OECD average is 23.6 percent) and poor cost recovery provisions for business investments.
- New Zealand has a narrow tax treaty network, with 40 countries.
- The cost of inventory can be accounted for using First-In-First-Out method or the average cost method (Last-In-First-Out is not permitted).