Find Accountancy, Audit and Tax expertise in New Zealand
- Overview
- Profession
- Tax
Overview
There are numerous accounting firms operating throughout New Zealand, based mainly in large cities such as Auckland and Wellington. This includes a significant presence of members of international accounting networks such as the ‘Big Four’ (Ernst and Young, PWC, KMPG and Deloitte).The Financial Reporting Standards Board of the New Zealand Institute of Chartered Accountants controls accounting standards in the country. Although it does not conform absolutely to IFRS (International Financial Reporting Standards), the Board has issued equivalent guidelines which are referred to as NZ-IFRS and ensure conformity of the guidelines with the New Zealand legislative environment. Fears that different private and public sector accounting standards would lead to divergence in the handling of transactions has led to proposed changes in Accounting Standards in 2012.The World Bank Ease of Doing Business Index (2011) places New Zealand in 18th place out of 183 countries, just below Australia in 18th place, when it comes to resolving insolvency. The World Economic Forum’s Global Competitiveness Report (2012-2013) shows that New Zealand comes 3rd in out of 143 countries worldwide in strength of auditing and reporting standards. The country scores 6.2 out of 7, well above the world mean of 4.6.
Profession
The New Zealand Institute of Chartered Accountants is the leading professional body for accounting firms who operate in New Zealand and abroad and represents some 33,000 members. The External Reporting Board, established under the 1993 Financial Reporting Act, is the agency responsible for financial reporting, auditing and accounting standards in the country and is an independent Crown Entity. The standard setting body for the Asian-Oceanic region is the Asian-Oceanic Standards Setting Group (AOSSG) which seeks to promote adoption of IFRS in the region and development of accounting standards. All the main universities in New Zealand offer courses in accounting. The Association of Chartered Certified Accountants (ACCA) offers the chance for students living in New Zealand to qualify as a chartered accountant through study, training and examination.
Tax
Corporate tax is charged on a flat rate and is down from 30% to 28% as of 2012. Income tax is charged progressively from 12.9% to 39% and non-residents are taxed only on income sourced from New Zealand. As of 2011, there was no capital gains tax in New Zealand but it was becoming a contentious issue of political debate. The World Bank Ease of Doing Business Index (2011) ranks New Zealand 36th out of 183 countries with regards to paying taxes, positioning it above Australia and South Africa but below the UK. In the World Economic Forum’s Global Competitiveness Report (2012-2013) New Zealand receives a score of 34.4 in total tax rate, which puts the country in 53rd position out of 141 countries, above Australia, US and UK.
| Accountancy, Audit and Tax organisations in New Zealand | |
|---|---|
| New Zealand Institute of Chartered Accountants |
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