5 August 2013
NZ and Viet Nam sign double tax agreement
Revenue Minister Todd McClay has welcomed the signing today of a new double tax agreement between New Zealand and Viet Nam. The signing took place following official talks in Viet Nam between Vietnamese State President Truong Tan Sang and New Zealand’s Governor-General, the Rt Hon Sir Jerry Mateparae, who is currently visiting South East Asia to promote New Zealand interests in the region.
“Today’s signing of a double tax agreement between our two countries recognises the increasing importance of New Zealand’s relationship with Viet Nam and the National-led Government’s commitment to lifting its engagement with South East Asia,” says Mr McClay.
On 12 July Prime Minister John Key launched the Government’s new “NZ Inc” ASEAN Strategy, which aims to improve New Zealand’s relationships, connections and trade and investment presence in the region.
Trade between Viet Nam and New Zealand has grown steadily over the past five years, with trade in goods and services amounting to $846 million in 2012, an increase of more than 60% since 2008.
“Education, dairy, timber, and food and beverage are already significant trade areas for us. Viet Nam also offers a lot of growth potential in other areas such as aviation, tourism, clean technologies, environmental management and agribusiness.” .
“The new agreement will come into force once legal formalities between New Zealand and Viet Nam are completed,” says Mr McClay.
Double tax agreements are aimed at reducing tax impediments to trade and investment between countries by preventing businesses from being taxed twice and giving greater certainty over the way tax rules are applied between countries. They also play an important role in helping tax administrations in the detection and prevention of tax evasion.
New Zealand currently has 38 double tax agreements with key trading and investment partners. Once ratified, the new agreement with Viet Nam will be the 39th double tax agreement.
The text of the Viet Nam-New Zealand double tax agreement is available at http://taxpolicy.ird.govt.nz/tax-treaties on Inland Revenue’s tax policy website.
Media contact: Rob Eaddy 027 459 6200