21 June 2004 Media Statement

Double tax agreement with South Africa ready to go

New Zealand’s new double tax agreement with South Africa has now been approved by Order in Council and is expected to come into force on 23 July, Revenue Minister Michael Cullen announced today.

“Extending and maintaining our network of 27 – soon to be 28 – double tax agreements is a priority for the government as they play an important role in removing obstacles to cross-border trade and investment.

“South Africa is an important emerging market for New Zealand, and the new double tax agreement will help forge stronger economic links between our two countries,” he said.

Other Orders in Council signed today:
- Incorporate into New Zealand law a double tax agreement with Chile, our first with a Latin American country. The next step is for Chile to complete the relevant legislative procedures.
- Incorporate into New Zealand law a double tax agreement with the United Arab Emirates, our first with a Middle Eastern jurisdiction. The agreement must now pass through the equivalent legislative process in the UAE.
- Update the agreement with the United Kingdom, to allow for better exchange of information and to deal with UK concerns about schemes designed to avoid capital gains tax. The updated agreement awaits completion of legislative procedures in the UK.
- Update the agreement with the Philippines, including the removal of tax sparing provisions. The updated agreement awaits completion of legislative procedures in the Philippines.
- Update the agreement with the Netherlands – including closing a tax avoidance opportunity in New Zealand involving the payment of cross-border insurance premiums to the Netherlands – and implement a convention for the mutual collection of tax debts. The necessary legislative procedures in the Netherlands have been completed.

The texts of the new and pending double tax agreements and amending protocols are available at www.taxpolicy.ird.govt.nz.

ENDS

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