Re: Personal Service Companies
> Not sure what you mean here.
> Assuming you mean raising corp tax levels?
I wasn’t suggesting anything about the level - it’s a few years since I lived there and I don’t know what the current UK rate is!
However I understand that UK dividends are taxed at a low rate separately from the Corp tax paid on the profit, and the poster I was replying to was suggesting fixing that by eliminating Corp tax.
The system in NZ taxes the dividends as Income at the same rate as any other Income you may have. The Corp tax that has been paid is offset against that tax amount owing when the dividend is paid (the process is called imputation) and any additional Income tax still owing is deducted as the dividend is paid.
There are a few corner cases that are dealt with in the tax return and there’s no equivalent to National Insurance in NZ - so that would add complexity, but as a system it’s much fairer, more consistent and harder to exploit than the UK one.