28 July 2005

NZ and Spain sign double tax agreement

The President of the Spanish Senate, Francisco Javier Rojo, and Revenue Minister Michael Cullen today signed a double tax agreement between Spain and New Zealand.

Double tax agreements reduce tax impediments to cross-border trade and investment, ensure that businesses are not taxed twice on income earned in the other country, and assist enforcement of the law between the two countries involved.

“Once in force, the new double tax agreement will help to reduce the costs for New Zealanders doing business in Spain and for Spaniards doing business in New Zealand,” Dr Cullen said.

“It will encourage stronger economic links between our two countries. Spain is growing in importance on our list of trading partners, following recent growth in exports of primary produce from New Zealand, and there is significant potential for increased investment between our two countries.

“The Spain-New Zealand double tax agreement will come into force once both parties have given legal effect to it, which in New Zealand’s case will occur through Order in Council,” Dr Cullen said.

New Zealand is party to double tax agreements with 29 other countries, with agreements with Chile and Poland pending.

The text of the double tax agreement signed with Spain is available at www.taxpolicy.ird.govt.nz.

ENDS

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