Chile-NZ double tax agreement in force
New Zealand's new double tax agreement with Chile has come into force, Revenue Minister Peter Dunne announced today.
The double tax agreement was incorporated into New Zealand law in 2004, but awaited the completion of legislative procedures in Chile, which has now occurred. The new agreement is effective from 21 June 2006.
"The new double tax agreement with Chile is our thirtieth such agreement and the first with a Latin American country," Mr Dunne said.
"I am very pleased the agreement has become a reality. New Zealand and Chile have a longstanding friendship and trade between the two countries is growing steadily.
"In the year to June 2005, our exports to Chile amounted to $40 million, while imports from Chile were worth nearly $43 million. Key exports are chemical products, seeds and some dairy products, while Chilean imports include grapes, wine and copper.
"Double tax agreements play an important role in removing obstacles to cross-border trade and investment. They prevent businesses being taxed twice, give greater certainty of tax treatment of cross-border business, lower taxes on some income and reduce compliance costs for some activities.
"The new double tax agreement with Chile will strengthen our business links and help to foster trade between our two countries," Mr Dunne said.
The text of the new double tax agreement is published at www.taxpolicy.ird.govt.nz.