New Zealand, Papua New Guinea DTA Enters into Force
February 17 — New Zealand Revenue Minister Todd McClay on February 10 announced that the agreement for the avoidance of double taxation between New Zealand and Papua New Guinea entered into force on January 21, 2014.
The two countries signed the tax treaty on October 29, 2012 (216 International Tax Monitor, 10/31/12).
In respect of New Zealand, the agreement is effect from March 1, 2014 for withholding taxes. The other provisions of the agreement will apply for income years commencing April 1, 2014.
In Papua New Guinea, the agreement will also apply from March 1, 2014 for withholding taxes. However, other provisions will generally apply for income years commencing Jan. 1, 2015.
Announcing the enforcement of the agreement, McClay said it would “strengthen international cross-border trade and investment partnerships for the benefit of businesses, investors and taxpayers in both countries.” “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,” he added.
Credit: Tax Treaties Analysis