Skip to main content
Inland Revenue

Tax Policy

Announcements
PUBLISHED 10 February 2014

NZ-PNG tax agreement in force

A double tax agreement between New Zealand and Papua New Guinea has come into force. For more information see the media statement and the text of the agreement.


Hon Todd McClay
Minister of Revenue

Media statement

10 February 2014

Tax agreement with PNG now in force

A new double tax agreement between New Zealand and Papua New Guinea is now in force, Revenue Minister Todd McClay announced today.

“Trade in the Pacific and particularly with Papua New Guinea is taking on greater importance for New Zealand. This agreement will strengthen international cross-border trade and investment partnerships for the benefit of businesses, investors and taxpayers in both countries,” Mr McClay says.

“The agreement recently came into effect after being signed by both countries in 2012. It will give businesses greater certainty over the tax treatment of cross-border investment income, reduce compliance costs for both New Zealand and PNG investors, and will lower withholding tax rates.”

“This agreement further strengthens our network of double tax agreements, and widens New Zealand’s tax information exchange network, which is important in helping authorities prevent tax evasion and avoidance.”

Double tax agreements help encourage growth and promote cross-border trade by preventing businesses and individuals from being taxed twice on income earned in the other country.

“This Government wants New Zealand businesses to operate competitively on the global stage. Double tax agreements help provide the business and tax environment to support them to do that,” Mr McClay says.

The PNG agreement brings the number of double tax agreements New Zealand has with other countries to 38. The full text of the New Zealand-PNG double tax agreement is available at www.taxpolicy.ird.govt.nz

Media contact: Hayden Cox 04 817 6991, 021 917339