Austria-NZ double tax agreement comes into force
The new double tax agreement between Austria and New Zealand has entered into force, Revenue Minister Peter Dunne announced today.
The agreement will take effect in both countries from 1 March 2008 for withholding taxes. For other taxes it will generally take effect from 1 April 2008 in New Zealand and from 1 January 2008 in Austria.
"I welcome the entry into force of our new double tax agreement with Austria, with whom we have a small but growing trade and investment relationship," Mr Dunne said.
"New Zealand exports to Austria, which amounted to NZ$26 million in the year ended June 2007, and consisted mainly of meat, transistors and electrical equipment for cars.
"Imports from Austria for the same period amounted to NZ$193 million and mainly consisted of motor vehicles, records and tapes, base metal mountings and added sugar waters.
"New Zealand is now party to 34 double tax agreements, which play an important role in reducing the costs of doing business and forging stronger economic links between two countries.
"Double tax agreements remove tax obstacles to cross-border trade and investment and prevent businesses being taxed twice on the resulting income. They also give businesses greater certainty about how cross-border investment income will be taxed, reduce compliance costs and lower tax on some income," Mr Dunne said.
The text of the new double tax agreement is published at www.taxpolicy.ird.govt.nz.
Rachel Baxter, Revenue advisor, 04-471 9728