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On 20 May 2025, Revenue Minister Simon Watts announced the withdrawal of the proposed Digital Services Tax Bill, favoring OECD Pillar 1 reforms over unilateral measures due to global developments and U.S. tariff threats.
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The withdrawn DST bill, introduced in 2023, aimed to tax non-resident digital service providers due to delays in reaching global consensus; its removal reflects support for multilateral solutions and excludes projected revenues from Crown accounts.
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Despite DST withdrawal in 2025, concerns persist about possible reintroduction, with earlier legislation targeting non-resident providers and including deferral options to 2030, if OECD reforms make progress.
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The bill proposed taxing companies with global turnover above €750 million and NZ revenue over NZ$3.5 million; New Zealand already applies GST to digital services from foreign providers since 2016.
Source: vatcalc.com
