29 November 2001 Media Statement

Double tax agreement with Russia a step closer

The long-awaited double tax agreement between New Zealand and the Russian Federation was this week given legislative effect in New Zealand, Revenue Minister Michael Cullen said today.

The agreement will not enter into force, however, until it is legislated for under Russian law.

"The main focus of the agreement is to reduce tax impediments to cross-border trade and investment, and assist enforcement of the law between the two countries, " Dr Cullen said.

"It will assist New Zealand businesses that trade with Russia, one of our largest markets for dairy products, by providing greater certainty about future taxation and reducing compliance costs."

"The agreement between the two countries was signed last year, and has been given legislative effect in New Zealand through Order in Council. It will now need to proceed through the Russian legislative process before it comes into effect, which is unlikely to happen before next year," Dr Cullen said.

The text of the agreement is available on the website of the Policy Advice Division of Inland Revenue at www.taxpolicy.ird.govt.

ENDS

© Scoop Media