New Zealand, Samoa sign double tax agreement
New Zealand, Samoa sign double tax agreement
WELLINGTON, July 8 (Xinhua) — New Zealand and the Pacific island nation of Samoa have signed a double tax agreement that should help boost trade and investment, New Zealand Prime Minister John Key said Wednesday.
Key, who is in Samoa for a rugby match between New Zealand’s All Blacks and Samoa, signed the agreement with Samoa Prime Minister Tuilaepa Sailele Malielegaoi.
“The signing of this double tax agreement is significant for our countries and will further strengthen the close relationship between New Zealand and Samoa,” Key said in a statement from his office.
“New Zealand is Samoa’s second largest trading partner. The agreement will provide a platform for increased trade and investment between our two countries, and will help assist the economic development of our Pacific island neighbor,” he said.
“Importantly, the tax agreement represents a further extension of New Zealand’s tax treaty network into the Pacific. Once the agreement enters into force, it will bring New Zealand’s network of tax treaties to a total of 40.”
Double tax agreements helped to reduce tax barriers to two-way trade and investment by preventing cross-border income being taxed twice, therefore giving certainty about how that income would be taxed.
They also lower withholding taxes, making it less costly for businesses in one country to invest in the other, and assist tax administration.
The agreement was expected to come into force later this year.
