New Zealand Taxation & Financial News » double taxation

NZ Bermuda TIEA Signed

Editor — Tue, 31 Mar 2009 08:55:29 +0000

New Zealand and Bermuda are set to sign a Taxation Information Exchange Agreement (TIEA) on the 16h of April.

The TIEA will be New Zealand’s second agreement of such a nature, following the first which is Netherlands Antilles. According to Revenue Minister Peter Dunne others are already under negotiation. This is on top of New Zealand’s 35 Double Taxation Agreements. The TIEA will be signed at the New Zealand Embassy in Washington DC.

According to Mr. Dunne, the TIEA will make it easier for the partner countries to access information about someone residing in either country, for taxation purposes. This will also aid in the process of discovering any assets that have not been disclosed to governments on either side.

DTA with Czech Republic in Effect

Editor — Thu, 04 Sep 2008 02:20:37 +0000

The Double Taxation Agreement between New Zealand and the Czech Republic came into effect on the 3rd of September.

The double taxation agreement which was signed on the 30th of October, 2007, was welcomed into force by Revenue Minister Peter Dunne. He went further to say that trade between New Zealand and the Czech Republic has been growing and has future potential for expansion. He cited figures of $9.5 million worth of exports to the Czech Republic and $30 million worth of imports.

Peter Dunne elaborated on the double taxation agreement and stated that it is aimed at lowering impedance to trade and investing between the two countries, through increasing assurance and tax certainty, while lowering compliance costs and in certain cases, tax liability.

The newly active double taxation agreement is the product of a number of bilateral visits by dignitaries from both countries. Most recent amongst these being the Czech Senate Committee of Legal and Constitutional Affairs led by their Chairperson Jaroslav Kubera in 2006, Cyril Svoboda, Deputy Prime Minister and Minister of Foreign Affairs in 2004 and the visit of Dame Silvia Cartwright, Governor General to Czech Republic in 2004.

New Zealand Double Taxation Agreements

Editor — Mon, 01 Sep 2008 21:48:00 +0000

Double taxation agreements are tax treaties between two countries. These agreements come into effect when a person is a tax-resident of both New Zealand and another country.

Double Taxation agreements prevent the situation of taxation on one income by two countries, through coming to an agreement as to what incomes will be taxed in the country of residence and exempt in the country of occurrence. It also deals with the opposite case where the income will be taxed at the country of occurrence and compensation arises in the country of residence.
Double Taxation also extends to more comprehensive sharing of tax information between tax authorities.

New Zealand currently holds double taxation agreements with the following countries:

Australia
Austria
Belgium
Canada
Chile
China
Czech Republic
Denmark
Fiji
Finland-
France
Germany
India
Indonesia
Ireland
Italy
Japan
Malaysia
Mexico
Norway
Poland
Republic of Korea
Russian Federation
Singapore
South Africa
Spain
Sweden
Switzerland
Taiwan
Thailand
The Netherlands
The Philippines
United Arab Emirates
United Kingdom
United States of America

NZ-UK Double Taxation Agreement Updated

Editor — Mon, 01 Sep 2008 02:29:17 +0000

An updated of the 1983 double taxation agreement between the United Kingdom and New Zealand was announced and came into force on the 29th of August. Primarily the update is an attempt to bring the agreement in closer alignment with OECD double taxation standards in regards to exchange of information between tax authorities. It further strengthens ability between the United Kingdom and New Zealand to enforce tax laws and recover tax debts across borders.

The Revenue Minister, Peter Dunne, was quoted saying that these updated regulations will improve both nation’s economies through the reduction of tax avoidance and evasion and the improvement of tax collection.

Imputation and Franking Credit Recognition

Editor — Fri, 15 Aug 2008 01:45:36 +0000

According to information provided by the New Zealand Parliament, the New Zealand and Australian governments are working on mutual recognition of Imputation and Franking Credit. Under the current tax regulations, investors have to pay tax on any dividends earned in New Zealand or Australia.

If the proposed recognition were to be adapted, investors and shareholders will be able to choose in which country they pay the tax on their dividends.

The issue of double taxation on dividends has been raised for many years, and if the proposed regulation were to be approved it would help the processes of further integration of the New Zealand and Australian economies