Monthly Archives March 2010

NZ Negotiating DTA with Hong Kong

March 29, 2010 International TaxationNew Zealand Taxation

Hong Kong night sceneryThe New Zealand and Hong Kong Governments have announced that they intend to soon initiate a round of negotiations concerning the establishment of a Double Taxation Agreement (DTA) between the nations.

On March 29th Peter Dunne, New Zealand Revenue Minister, announced that the New Zealand Government and the Hong Kong Government expect to start negotiations on a DTA in October. The agreement aims to eliminate instances of double taxation on incomes earned by individuals and businesses entities while operating in the corresponding nation. The DTA will also feature measures to increase taxation transparency between the two nations, and comply with the Organization for Economic Cooperation and Development’s (OECD) international standards on tax information exchange.

Peter Dunne commented on ...

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NZ Taxes Unfair for Families

March 25, 2010 New Zealand Taxation

BeehiveThe New Zealand personal-tax system lacks integrity and is unfair for many New Zealand families, and the upcoming budget promises to address the issue, said Bill English, New Zealand Minister of Finance.

Confirming the Tax Working Group’s analysis of the New Zealand tax system, Bill English delivered a speech on March 23rd calling the taxes burden faced by an average working family “unfair and inequitable.” According to the Minister the root of the problem resides in the current definition of income and the proliferation of differing tax rates, which become apparent when individuals or families with relatively similar incomes have significantly dissimilar tax obligations.

Bill English illustrated an example of taxation inequality by drawing attention to a hypothetical self-employed ...

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NZ-Australia DTA Come into Force

March 22, 2010 International FinanceInternational TaxationNew Zealand FinanceNew Zealand Taxation

The Seat of GovernmentThe Double Taxation Agreement (DTA) between Australia and New Zealand has come into force and will be applied with the new financial year, having been passed into legislature by both Governments.

After much public anticipation the New Zealand Government released a media statement on March 22nd announcing that New Zealand and Australia have given legal effect to the DTA and passed legal notes which to that effect, allowing the agreement to come into effect soon. The newly established withholding rates will apply from May 1st 2010 onwards, and all other changes will begin on April 1st.

Under the now-established tans-Tasman agreement tax-free pensions from one country will remain exempt if the recipient moves to the corresponding nation...

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Foreign Investment Funds Paper Released

March 19, 2010 International TaxationNew Zealand Taxation

BeehiveThe New Zealand Government has released an issues paper seeking feedback on possible changes to be made to the tax treatment of non-portfolio foreign investment funds.

At the International Fiscal Association conference held in Christchurch on March 19th Peter Dunne, New Zealand Revenue Minister, released an issues paper on the tax treatment of New Zealand companies with offshore subsidiaries. The paper aims to build upon reforms carried out last year in an effort to allow national companies to compete in foreign markets without major tax hindrance. Particularly the issues paper seeks feedback on how tax exemptions could be extended to investments made by New Zealand companies into foreign entities in which they are not a controlling partner, commonly called a foreign investment fund.

Acco...

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