New Zealand plans to introduce a digital services tax by 2025 if global consensus isn’t reached, according to Finance Minister Grant Robertson. The government will present the Digital Services Tax Bill shortly, despite a commitment to wait until 2025 for unilateral action.
Progress in OECD negotiations has been sluggish, and modern business practices have outpaced the international tax framework.
The tax aims at large multinationals profiting from New Zealand users on social media, search engines, and online marketplaces. It will apply to companies earning over EUR 750 million globally and NZD 3.5 million locally from digital services. The tax rate will be three percent, mirroring rates in France and the UK. Robertson reaffirms support for a global agreement.
Effective date: 2025