Canada-New Zealand DTA: Mode of Application for Article 10, p. 3

This Mode of Application was signed on 16 February 2016 and is effective from 1 August 2015. It was added to this website on 11 March 2016.

Text: PDF (80 KB) | DOC (32 KB)


Memorandum of Understanding between the Competent Authorities of Canada and New Zealand on the Mode of Application of paragraph 3 of Article 10 (Dividends) of the Convention between Canada and New Zealand for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion With Effect to Taxes on Income

The undersigned competent authorities have established this Mode of Application for the application of Article 10 (Dividends) of the Convention between New Zealand and Canada for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, signed at Wellington on 3 May 2012.

1. Paragraph 3 of Article 10 of the Convention will apply to exempt dividends from source taxation where the dividends are paid to the other Contracting State or a political subdivision or local authority thereof or to any wholly-owned agency or instrumentality of that State, political subdivision or local authority that performs functions of a governmental nature, which has been approved by the competent authorities in accordance with Article 10 of the Convention, provided that the recipient together with any related entities own less than 10 per cent of the voting power or value of the payer of the dividend.

2. For the purposes of this Mode of Application, paragraph 3 of Article 10 will apply:

a) in the case of New Zealand to:

i) the New Zealand Superannuation Fund and its wholly-owned subsidiaries,
ii) the Guardians of New Zealand Superannuation and its wholly-owned subsidiaries,
iii) the Earthquake Commission and its wholly-owned subsidiaries, and
iv) the Reserve Bank of New Zealand;

and

b) in the case of Canada to:

i) the Canada Pension Plan,
ii) the Canada Pension Plan Investment Board and its wholly-owned subsidiaries,
iii) the Quebec Pension Plan,
iv) the Caisse de dépôt and its subsidiaries, where the dividends received are wholly for the benefit of the Quebec Pension Plan, and
v) the Bank of Canada.

3. It is understood that this Mode of Application will apply to dividends paid on or after 1 August 2015.

On behalf of the competent authority of Canada

...Costa Dimitrakopoulos...

Date: 25 January 2016

Costa Dimitrakopoulos
Director General
Legislative Policy Directorate
Legislative Policy and Regulatory Affairs Branch
Canada Revenue Agency

On behalf of the competent authority of New Zealand

...Carmel Peters...

Date: 16 February 2016

Carmel Peters
Policy Manager
International Policy and Strategy
Inland Revenue Department