Hon Bill English

Minister of Finance

Hon Peter Dunne

Minister of Revenue

1 December 2010 Media Statement

New Zealand-Hong Kong tax agreement signed

New Zealand and Hong Kong have concluded a double tax agreement, Finance Minister Bill English and Revenue Minister Peter Dunne announced today.

Mr English and Hong Kong’s Financial Secretary John Tsang signed the agreement in Auckland.

"This agreement is an important step forward in strengthening our economic relationship with Hong Kong,” Mr English said.

"It is a significant addition to New Zealand’s network of double tax agreements with key trading partners and is potentially valuable to businesses and investors from both here and Hong Kong."

Mr Dunne said Hong Kong was currently New Zealand’s ninth largest market for exports and an important source of investment. Exports to Hong Kong are currently worth $850 million per annum.

"This agreement will make New Zealand a more attractive investment destination for Hong Kong investors, and will make it easier for New Zealand businesses to invest in Hong Kong," Mr Dunne said.

Double tax agreements are designed to encourage growth in economic ties between countries and help cross-border trade by providing certainty of tax treatment and reducing withholding tax rates.

The agreement will bring withholding tax rates into line with rates currently in operation with the USA and Australia.

The full text of the double tax agreement can be found at wwwird.taxpolicy.govt.nz

ENDS

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