Inland Revenue - Tax policy Tax Policy

News and information about the Government's tax policy work programme, including:
- proposed changes to the laws that Inland Revenue is responsible for
- updates on the progress of bills through Parliament
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Update of US-NZ DTA progresses

30 November 2009

The forthcoming update of the double tax agreement between the United States and New Zealand took a further step forward with the signing last week of an Order in Council that incorporates the amending protocol into New Zealand law. For more information see the media statement.


Hon Peter Dunne
Minister of Revenue

MEDIA STATEMENT

Dunne: Amended US-NZ double tax agreement progressed

The update of the double tax agreement between the United States and New Zealand has taken a further step towards completion with the signing of an Order in Council that incorporates the amending protocol into New Zealand law, Revenue Minister Peter Dunne announced today.

The main change in the 28-year-old treaty will be lower withholding tax rates that apply to certain dividends, interest and royalty payments made between New Zealand and the United States.

"I welcome this latest development towards bringing this very important tax treaty up to date," Mr Dunne said.

"The new agreement will benefit both countries by helping to reduce tax barriers to two-way trade and investment, with lower withholding tax rates making it less costly for the businesses involved.

"The next step in the process will be for the United States to give legal effect to the amending protocol, which will be the final legislative step before the updated agreement can enter into force," Mr Dunne said.

Mark Stewart - Press Secretary, Office of Hon Peter Dunne
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