NZ, Singapore sign new double tax agreement
New Zealand and Singapore have a signed a new double tax agreement to replace their 1973 treaty, Revenue Minister Peter Dunne announced today.
"The agreement will modernise our tax treaty arrangements with Singapore and bring them into line with best international practice," Mr Dunne said.
"In particular, the new agreement will allow for full exchange of information on tax matters between our two countries.
"Business between the two countries is worth nearly $700 million a year to New Zealand exporters, while goods worth $1.9 billion are imported from Singapore. Singapore is also an important source of investment for New Zealand, with recent direct investment from Singapore totalling $1.6 billion.
"This updated agreement reflects the significance of Singapore as one of New Zealand's more important trading and investment partners," Mr Dunne said.
"Double tax agreements are treaties that help to reduce tax impediments to trade and investment between countries by preventing cross-border business income being taxed twice. They also give greater certainty about how that income will be taxed.
"The updated agreement with Singapore will come into force once both countries have given legal effect to it. In New Zealand, this will occur through an Order in Council," he said.
The text of the new double tax agreement, which was signed at a ceremony in Singapore today, is available at www.taxpolicy.ird.govt.nz.
Mark Stewart - Press Secretary, Office of Hon Peter Dunne
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