New Zealand plans to impose digital tax on giant tech firms in 2025

New Zealand is planning to introduce a legislation this week that enables a digital services tax on large multinational companies, though the levy won’t be imposed until 2025, said Finance Minister Grant Robertson, on Tuesday.

The proposed tax would be payable by multinational businesses that make over $810 million a year from global digital services and over $2 million a year from digital services provided to New Zealand users, Robertson added.

This decision follows the failure of global consensus discussions within the Organization for Economic Cooperation and Development (OECD) regarding the implementation of a unified tax framework.