NZ, Czech Republic sign double tax agreement
New Zealand has signed a double tax agreement with the Czech Republic, Revenue Minister Peter Dunne announced today.
"Once in force, the double tax agreement will help reduce tax impediments to trade and investment between our two countries," Mr Dunne said.
"Current levels of trade and investment between New Zealand and the Czech Republic are modest but there is potential for growth, given that the former Czechoslovakia used to be one of our larger export markets in Central Europe.
"New Zealand exports to the Czech Republic in the year to December 2004 consisted mainly of wool and were worth nearly NZ$4 million. Czech Republic exports to New Zealand for the same year consisted mainly of motor cars and were worth more than NZ$27 million.
"Double tax agreements prevent cross-border business income being taxed twice, give greater certainty about how that income will be taxed, to reduce compliance costs and to lower tax on some income.
"New Zealand is already party to double tax agreements with 33 other jurisdictions, and I welcome the addition of the Czech Republic to the network.
"The agreement will come into force once both parties have given legal effect to it, which in New Zealand’s case will occur through an Order in Council," Mr Dunne said.
The text of the double tax agreement, signed in Prague on 26 October, is available at www.taxpolicy.ird.govt.nz.
Contact: Rachel Baxter, Tax advisor, Tel: 04 471 9728