The New Zealand government today announced that it will open a consultation in May on the design of digital services tax on the revenue of multinationals operating in New Zealand.
“Highly digitalized companies, such as those offering social media networks, trading platforms, and online advertising, currently earn a significant income from New Zealand consumers without being liable for income tax. That is not fair, and we are determined to do something about it,” Finance Minister Grant Robertson said.
The tax would serve as an interim measure until the OECD reaches agreement on a coordinated global method to address the tax challenges of digitalization.
The OECD is working to gain consensus among nations by the end of 2020 on how to best update these rules.
Australia last October consulted on options to tax digital firms, including on design considerations for possible interim measures.
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