World Bank says tax burden on NZ businesses 'minimal'

A World Bank study has ranked New Zealand 10th out of 175 economies for ease in paying taxes.

Finance Minister Michael Cullen said the Paying Taxes: The Global Picture study found New Zealand was one of the easiest economies in the world for businesses to pay taxes.

The World Bank-PricewaterhouseCoopers study ranked Australia at 35th.

Dr Cullen said the result showed government progress in improving the competitiveness of business.

The study ranked New Zealand at eighth for the least time spent complying with tax requirements at 70 hours per year. Australian businesses spending an average for 107 hours a year complying.

Dr Cullen said if tax havens and oil producers that did not need to tax to finance spending were excluded New Zealand's ranking would rise to fifth in the world.

New Zealand had made changes such as aligning GST and provisional tax dates and more would be done once the Business Tax Review was finalised.

"It is important we continue our efforts as the World Bank study found that when the tax system is less onerous we get better infrastructure and education systems, higher investment and lower avoidance activity."

- NZPA