Google has reported another million dollar loss for its New Zealand business.

The local subsidiary reported a loss of $1.037 million for the year, which was on par with the figure reported a year earlier.

The company's revenue rose to $17.5 million, up from $13.8 million a year earlier.

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Google's expenses in the latest financial year included income tax of $532,385, or $398,341 after adjustments, up from $392,917 a year earlier.

Google is estimated to make hundreds of millions of dollars in the local market from its advertising business, but it has until recently recorded only service and support fees paid by its parent in the local market. The remaining revenue has been reported in low-tax havens Ireland or Singapore.

This report does, however, mark the last time that Google will be reporting its locally earned revenue abroad.

Google shifted to a reseller model last and has been booking its revenue in New Zealand since November.

In a statement sent to the Herald, a spokesperson stressed that Google has abided by tax rules in all countries where it does business.

""We pay all of the taxes due and comply with the tax laws in every country we operate in around the world," the spokesperson said.

"Alphabet, Google New Zealand's ultimate parent company, paid more than US$4.17 billion of corporate income taxes globally during 2018. We agree everyone would benefit from a simpler, more transparent system and believe international forums are the right places to have those conversations."

In March this year, digital media expert Kris Hadley, a founding partner at independent media agency Together, says that at least 90 per cent of the overall search advertising can be attributed directly to Google.


Of the $1 billion spent on digital advertising in 2018, $659.5 million was spent on search-based advertising, according to the Interactive Advertising Bureau figures.

So, at a conservative estimate of 90 per cent, it's fair to say that around $594m goes to Google through its search offering.

While Google has abided with local laws, its low tax contribution has long led to criticism in the local market.