The Inland Revenue Department (IRD) New Zealand has updated its compliance focus guide for multinational enterprises (MNEs) to reflect important changes since 2019, including the integration of OECD base erosion and profit shifting (BEPS) measures and the upcoming Pillar Two global minimum tax, which will take effect in New Zealand in 2025.
The revised guide highlights enhanced risk profiling through analytics and intelligence from targeted questionnaires and country-by-country (CbC) reporting. It identifies tax governance, or the lack thereof, as a key risk indicator, highlighting the importance of documented support in managing transfer pricing and international tax risks.
Additionally, the guide provides checklists and red flag indicators to help MNEs self-assess their international tax and transfer pricing risk profiles, aiming to boost compliance and transparency among companies operating in New Zealand.
