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3% GST levy on multinational digital service providers

The Inland Revenue of New Zealand plans to introduce a 3% Digital Service Tax (DST) on large multinational companies in 2025 to make the tax system more equitable. "We don’t think it’s fair that everyday Kiwis pay their fair share of taxes but there’s no tax liability for large multinationals," said the Minister of Finance.

According to the Minister of Finance, the proposed digital service tax will target large multinational companies that make more than EUR750 million a year from global digital services and more than NZD3.5 million a year from digital services provided to New Zealanders, including those who use social media platforms, search engines, and online marketplaces.

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