Monthly Archives September 2016

Netflix Tax Set to Start in New Zealand

September 30, 2016 Taxation in New Zealand

Netflix TaxWELLINGTON – Digital products and services are about to get more expensive over the weekend, as the long-planned Netflix Tax takes effect.

From October 1st New Zealand will begin levying the so-called “Netflix Tax” on the cross-border purchase of remote services and intangibles.

The “Netflix Tax” is not a new tax, but is an extension of the existing GST system to encapsulate online purchases which were previously exempt from the tax.

From October onward, all overseas retailers who sell at least NZD 60 000 worth of intangible goods and services to New Zealand taxpayers will be required to register for GST in New Zealand, and collect the 15 percent tax on all purchases.

Retailers are expected to take reasonable steps to ascertain the true location of customers, and may need to anal...

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US State Taxes Ranked

September 29, 2016 Taxation in USA

Business Taxes in the USAWASHINGTON D.C. – All the states of the USA have been ranked for their tax friendliness, with Wyoming coming out on top.

On September 28th the US think-tank the Tax Foundation released its annual State Business Tax climate Index, ranking each US state for its tax system for businesses.

The highest ranked states on the Index this year were Wyoming, South Dakota, Alaska, Florida, and Nevada.

Conversely, the lowest ranked states were New Jersey, New York, California, Vermont, and Minnesota.

It was noted that while every top ranked state levied property taxes and unemployment insurance taxes, many were missing some of the major tax types, such as corporate income tax, sales tax, or corporate income tax.

At the same time the lowest ranked taxes commonly had “…complex, non-neutral taxes with c...

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Spain to Tax Bitcoin Mining

September 28, 2016 Taxation in Spain

Tax on bitcoinMADRID – Bitcoin miners in Spain could soon pay a tax of as much as 47 percent, as the national government recognizes the potential profitability of the activity.

A recent notice issued by the National Directorate of Tax of Spain indicated that the minim Bitcoins and other cryptocurrencies will soon be a taxable activity.

Bitcoins and other cryptocurrencies are created through a process called mining where custom-built computers are used to solve complicated mathematical problems in order to obtain the cryptocurrencies.

Previously mining has not been a taxed activity, despite the fact that the result is the creation of a valuable asset.

The National Directorate of tax indicated that they have taken the view that mining is an economic activity.

It has not yet been indicated how mining w...

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Australia Drops Backpacker Tax

September 27, 2016 Taxation in Australia

Tax on backpackersCANBERRA – Backpackers in Australia will be breathing a sigh of relief, as the government back down from its plan to levy a raised tax rate for foreign workers.

On September 27th the government of Australia backed down on its intentions to apply an income tax rate of 32.5 percent on the incomes earned by working holiday makers.

Australian citizens enjoy a zero rate of tax on personal incomes up to AUD 18 200, followed by a rate of 19 percent on incomes between AUD 18 201 and 37 000, with a rate of 32.5 on all further income.

The government had previously stated that it would drop the thresholds for any non-residents with working visas in Australia, instead levying incomes at the full rate of 32.5 percent.

The intention quickly proved to be controversial, with many groups and experts clai...

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Doubts Raised on New Zealand Netflix Tax

September 26, 2016 Taxation in New Zealand

Online shopping taxAUCKLAND – New Zealand’s new “Netflix Tax” is built on excessive optimism and will not help brick-and-mortar retailers, according to an expert.

Over the weekend Mark Keating, a tax law lecturer at the University of Auckland, suggested that the upcoming GST on digital goods and services purchased by New Zealanders from international providers may not be as effective as hoped.

Presently a New Zealander purchasing a digital good or service, such as media or software, from an overseas provider is not liable to pay GST of 15 percent.

However, from October 1st service providers selling digital goods and services to New Zealanders will be required to register for GST, collect the applicable GST, and pay the tax to the national Inland Revenue Department.

The tax measure has been dubbed the “Ne...

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