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As ESG investment grows across Asia-Pacific, businesses face increasingly complex tax and transfer pricing implications. Alejandro Ces and Alex Yam produced an article for Tax Notes which explores the evolving regulatory landscape across 10 APAC jurisdictions, including New Zealand. It provides practical insights into allocating ESG-related costs, managing cross-border arrangements and ensuring transfer pricing approaches are appropriately documented.

A global minimum tax has been introduced, which ensures that large multinationals pay at least 15% tax in all the jurisdictions they operate. This will have the effect of “reducing the incentive for profit shifting and placing a floor under tax competition, bringing an end to the race to the bottom on corporate tax rates,” as the OECD explains.

The broader implications of tariffs for New Zealand and Australian multinational businesses exporting to the US are significant. This environment is incredibly dynamic as more tariffs and retaliatory measures are released almost daily.

Prevention is better than cure: That’s Inland Revenue’s perspective on tax compliance for multinationals. It wants to make compliance easy and non-compliance difficult, by helping customers early, providing clear guidance and keeping costs down.