Company tax will drop from next year alongside the much-hyped reduction to personal income tax and GST is on the rise, Finance Minister Bill English’s budget revealed today.
Billed as the biggest tax reform in 25 years, Budget 2010 contained few surprises confirming the top personal tax rate reduction from 38% to 33% and an increase in GST to 15% from October 1 this year.
However, company tax is also set to drop with a cut from 30% to 28% to apply in the 2011/12 income year. For most companies, this will take effect on April 1 next year.
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