Have you ever wondered how much tax New Zealand banks pay? All your questions are answered below.
One of the most discussed topics since its creation, and may be one of the most discussed topics until the end of time (at least in our time): taxes.
Today, we will take an in-depth look at the smallest and largest banks operating in New Zealand, their tax rates, how much they have paid, and how much they should have paid.
Before you start: New Zealand’s corporate tax rate is 28%. Since most banks operate as a business, use this chart to estimate.
All of the information you see in the table below is taken directly from your year-end financial statements.
Tax Paid – New Zealand Banks
We love graphics and we know you do too.
Here are a few to play with. First, a pie chart that gives us a clear view of how much the Big 4 banks pay in tax.
Total Taxes Paid – Individual Banks ($)
Next, the dollar value of the tax amount minus the tax owed by each bank as shown in its accounting.
A negative value indicates that they paid more than the stated 28% of taxes.
Tax Missing from 28% Rate ($)
Finally, the tax rate depends on the total taxes they paid and their net profit before tax.
You’ll notice that many are sitting around the 28% mark, with a few outside on either side.
Tax Rate Paid (%)
- Four banks (ANZ, ASB, WESTPAC, BNZ) contributed 91.44% of taxes to the overall banking industry.
- The average tax rate for all banks is 24.87%.
- However, the average weighted tax rate based on net income is 27.46%.
- It’s an even 50/50 split between those who paid more than 28% and those who paid less than 28%.
- Only one bank posted a net loss over the period: Bank of China (which received a credit crunch).
- Bank of Baroda had the lowest tax rate of 2.95% which means it paid only 10.5% of the tax due.
- Total: $1.779 billion in taxes collected from New Zealand banks
- Total: $34.44 million in tax not collected from New Zealand banks
- However, the New Zealand government has achieved a tax collection rate of 98.06% (only 1.94% of taxes are missing).