New Zealand on Monday cleared their plans to update its laws so it can tax revenue earned by multinational digital firms such as Google, Facebook and Amazon, extending a global effort to bring global tech giants into the tax net.
The new move will force the global tech giants to pay tax in NZ.Prime Minister Jacinda Ardern said the cabinet had agreed to issue a discussion document about how to update the country’s tax.
“Our current tax system is not fair in the way it treats individual tax payers, and how it treats multinationals,” Ardern told reporters.
The value of cross-border digital services in New Zealand is estimated to be around NZ$2.7 billion ($1.86 billion).The new digital services tax is between NZ$30 million and NZ$80 million, Finance Minister Grant Robertson said in the statement.
New Zealand is the latest in the list of countries which were already imposed Digital Service Tax (DST) including U.K,Italy,Austria,Spain and India.