NZ-Japan to update double tax agreement
Revenue Minister Peter Dunne today welcomed the agreement in principle to a new double tax agreement between New Zealand and Japan.
“This is a very positive step towards modernising our tax treaty arrangements with Japan, which are now quite dated,” Mr Dunne said. ”The updating of the treaty recognises the importance of Japan as a major investment and trading partner.”
The announcement follows negotiations last week, during which officials from both countries agreed in principle to a range of business-friendly tax changes which will be included in a new double tax agreement once it has been approved by both governments.
Mr Dunne said the changes, which will include lower withholding tax rates on dividends, interest and royalties, and an arbitration provision to deal with taxpayer disputes, would be welcome news for businesses and investors in both countries.
“As well as helping to further strengthen economic ties and facilitate increased bilateral investment between the two countries, the new agreement will build upon the existing arrangements for cooperation on tax matters with Japan,” Mr Dunne said.
The updated agreement now awaits approval and signature by both governments. The text of the agreement will be publicly released after the two governments have signed it, and will come into force once both countries have completed their respective legal requirements.
This year marks the 60th anniversary of New Zealand-Japan diplomatic relations.
Mark Stewart | Press Secretary | Office of Hon Peter Dunne
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