New Zealand will introduce legislation this week that enables a digital services tax on large multinational companies, though the levy won’t be imposed until 2025.
The proposed tax would be payable by multinational businesses that make over €750 million a year from global digital services and over NZ$3.5 million a year from digital services provided to New Zealand users, Finance Minister Grant Robertson said Tuesday in Wellington.
Governments around the world are concerned that the likes of Google and Facebook don’t pay enough tax or don’t pay it in the right places, and that current global tax rules don’t appropriately capture the way these companies make money.
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