The New Zealand government has taken steps to increase the tax burden on large multinational companies providing services to their country. The country will introduce a new law this week to collect digital services tax from these companies.
Finance Minister Grant Robertson said on Tuesday (August 29) that the proposed tax would be imposed on multinational companies. These companies generate $810 million in digital services worldwide and $2 million in New Zealand. However, the new law will not be implemented before 2025.
Following France and the UK, New Zealand will impose a 3 percent tax on digital service revenue. As such, 222 million New Zealand dollars will be collected in four years.
