Why the new global tax rate is a big deal – and what it means for tech giants in NZ

A new agreement looks set to close a century-old tax rule that has allowed multinational tech companies to avoid paying tax around the world. So, asks The Spinoff, does this mean Facebook will finally pay tax in New Zealand? “When the international tax system was put together, largely after the first world war, there were no digital revenues,” tax expert Geof Nightingale explains. Under the new international agreement, more than $180b of global profit could be eligible to be reallocated for taxation. But Nightingale says, “Given New Zealand’s relative size to other markets… it’s not going to be a huge source of additional tax revenue.”