Base erosion and profit shifting

The Government and officials' are seeking feedback on proposals to strengthen New Zealand’s rules for taxing multinationals.

Three consultation documents released on 3 March 2017 contain proposals for:

–  Tackling concerns about multinationals booking profits from their New Zealand sales offshore, even though these sales are driven by New Zealand-based staff. These are set out in the Government discussion document BEPS – Transfer pricing and permanent establishment avoidance. Submissions closed on 18 April 2017.

–  Preventing multinationals using interest payments to shift profits offshore. These are covered in the Government discussion document BEPS – Strengthening our interest limitation rules. Submissions closed on 18 April 2017.

–  Implementing New Zealand’s entrance into an international convention for aligning our double tax agreements with OECD recommendations. These are set out in an officials' issues paper, New Zealand’s implementation of the multilateral convention to implement tax treaty related measures to prevent BEPS. Submissions closed on 7 April 2017.