NZ-Singapore double tax agreement
New Zealand's double tax agreement with Singapore is being updated to cover New Zealand entities providing consultancy services in Singapore and Singapore entities providing those services in New Zealand.
Once in force, the amendment to the Protocol will resolve certain difficulties over the interpretation of the DTA.
Double tax agreements are designed to reduce tax impediments to cross-border trade and investment. They ensure that businesses are not taxed twice on income earned in another country, and help enforce the tax laws between the countries involved. The double tax agreement with Singapore is one of New Zealand’s earliest DTAs, and was signed between the two countries in 1973.
"The changes will come into force once both countries have given legal effect to it. In New Zealand's case, this will occur through an Order in Council," Revenue Minister Michael Cullen said.
Last year Singapore's direct investments in New Zealand totalled more than $1,300 million, with New Zealand exporting more than $331 million of merchandise to Singapore.
"The agreement reflects the significance of Singapore as one of New Zealand's major trading and investment partners," said Dr Cullen.
The text of the DTA and updated Protocol can be viewed at: www.taxpolicy.ird.govt.nz/international/DTA/index.html.
Contact: Patricia Herbert, press secretary, 04 471 9412 or 021 270 9013