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
- policy announcements

Hong Kong DTA signed

1 December 2010

Finance Minister Bill English today signed a double tax agreement with Hong Kong. In announcing the agreement, Mr English said the agreement was an important step forward in strengthening our economic relationship with Hong Kong and a significant addition to New Zealand's network of double tax agreements. For more information, see the media statement and the text of the agreement.


Hon Bill English
Minister of Finance

Hon Peter Dunne
Minister of Revenue

MEDIA STATEMENT

New Zealand-Hong Kong tax agreement signed

New Zealand and Hong Kong have concluded a double tax agreement, Finance Minister Bill English and Revenue Minister Peter Dunne announced today.

Mr English and Hong Kong's Financial Secretary John Tsang signed the agreement in Auckland.

"This agreement is an important step forward in strengthening our economic relationship with Hong Kong," Mr English said.

"It is a significant addition to New Zealand's network of double tax agreements with key trading partners and is potentially valuable to businesses and investors from both here and Hong Kong."

Mr Dunne said Hong Kong was currently New Zealand's ninth largest market for exports and an important source of investment. Exports to Hong Kong are currently worth $850 million per annum.

"This agreement will make New Zealand a more attractive investment destination for Hong Kong investors, and will make it easier for New Zealand businesses to invest in Hong Kong," Mr Dunne said.

Double tax agreements are designed to encourage growth in economic ties between countries and help cross-border trade by providing certainty of tax treatment and reducing withholding tax rates.

The agreement will bring withholding tax rates into line with rates currently in operation with the USA and Australia.

The full text of the double tax agreement can be found at www.taxpolicy.ird.govt.nz

Media contacts:
Grant Fleming 021 277 9869 (Minister English)
Mark Stewart 021 243 6985 (Minister Dunne)