Tuesday, 11 April 2017

New Zealand issues BEPS consultation papers

On 3 March 2017, New Zealand’s Minister of Revenue and the Finance Minister released three BEPS consultation papers that address the following:

  • Tackling concerns relating to transfer pricing and avoidance of permanent establishment (PE) status, regarding multinationals booking profits from their New Zealand sales offshore, even where the sales are driven by New Zealand-based staff;
  • Preventing multinationals from using interest payments to shift profits offshore by strengthening the rules governing limits on the deductibility of interest expenses; and
  • Implementing the multilateral instrument (MLI) to align New Zealand’s tax treaties with the OECD recommendations.

In a media statement that accompanied the release of the consultation papers, the ministers acknowledged that, although New Zealand’s broad-base, low-rate tax system operates well by global standards, it is important that the system continue to evolve, to ensure that all companies operating in the country are paying their fair share of tax.
Submissions on the consultation document on implementing the MLI are open until 7 April 2017; submissions on the other two consultations are open until 18 April 2017.

Source & more info: Deloitte