The OECD provided a blueprint for preventing “double non-taxation” through the base erosion and profit shifting (BEPS) recommendations presented last week. Governments—including New Zealand—will now need to consider BEPS implementation, with domestic and political considerations taking centre stage.
If New Zealand decides to implement the OECD’s recommendations, what could taxpayers expect? A key area to monitor will be interest deductibility.
The New Zealand government’s proposals are expected to work their way through the generic tax policy process in due course. New Zealand businesses with a cross-border presence or facing international competition would need to monitor the progress on all BEPS action items—particularly if other countries are likely to change their rules.
Read an October 2015 report [PDF 623 KB] prepared by the KPMG member firm in New Zealand
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