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

China

1986 agreement

Status: In force
Signed: 16 September 1986
In force: 17 December 1986
Effective: In New Zealand: From income year beginning 1 April 1987.
In China: From the taxable year beginning 1987.
Refer to Article 28 of the agreement.
Legislation: Double Taxation Relief (China) Order 1986 (New Zealand Legislation website)

Protocol to the 1986 agreement

Status: In force
Signed: 16 September 1986
In force: 17 December 1986
Effective: In New Zealand: From income year beginning 1 April 1987.
In China: From the taxable year beginning 1987.
Refer to Article 28 of the agreement.
Legislation: Double Taxation Relief (China) Order 1986 (New Zealand Legislation website)

Second protocol to the 1986 agreement

Status: In force
Signed: 7 October 1997
In force: 22 March 2000
Effective: Articles 1 and 3: From 1 July 1991.
Article 2: From entry into force date
Article 4: From 1st day of month following entry into force date.
Refer to Article 5 of the agreement.
Legislation: Double Taxation Relief (China) Amendment Order 1997 (New Zealand Legislation website)

Frequently asked question

Non-extension of Chinese DTA to Hong Kong

Question:

Does the double taxation agreement (DTA) between New Zealand and China extend to Hong Kong?

Answer:

No, the DTA with China has never extended to Hong Kong.  New Zealand now has a separate DTA with Hong Kong that entered into force on 9 November 2011.

"China" is defined narrowly for the purposes of the China DTA.

Since the hand-over of Hong Kong to China in 1997 they have been one country, although Hong Kong is a "special administrative district" of China. The laws of China will not apply to Hong Kong for a period of 50 years following the 1997 hand-over.

The relations between China and Hong Kong are framed by the 1984 Sino-British Joint Declaration and by the Basic Law on Hong Kong, the latter being legislation promulgated by China which became effective on 1 July 1997.

The Joint Declaration established the concept of "one country, two systems", and guarantees maintenance of local rule for 50 years after the hand-over of Hong Kong to China in 1997.

The DTA defines "China" as meaning the People's Republic of China (PRC) and includes the territory of the PRC in which the Chinese laws relating to taxation apply. Under the Basic Law on Hong Kong, the Chinese taxation laws do not apply to Hong Kong, so the DTA between New Zealand and China is not extended to include Hong Kong.