New Zealand wants to update its tax rules to meet the demands of the gig economy. A new document includes an intriguing possibility: will authorities lower the GST threshold to include more gig economy workers?
New economy, new tax rules
New Zealand has released a discussion document on “The role of digital platforms in the taxation of the gig and sharing economy”.
The discussion document points out that the gig and sharing economy raises complex questions about income tax and information sharing.
The document also emphasises the need to apply GST fairly across the New Zealand economy and ensure a broad GST revenue base. According to the document, that could mean lowering the GST threshold. (To understand why the VAT/GST threshold is so important, see our guide to VAT compliance requirements.)
Source VATit
