Hon Dr Michael Cullen
Minister of Finance
Hon Peter Dunne
Minister of Revenue
Friday, 2 May 2008 Media Statement
US-NZ double tax agreement to be updated
The double tax agreement between the United States and New Zealand is to be updated in negotiations scheduled to take
place in June, Finance Minister Michael Cullen and Revenue Minister Peter Dunne announced today.
“We will be updating the 25-year-old treaty to take account of developments in treaty practice generally. Resulting
changes will be made through an amending protocol rather than through negotiation of a new treaty.
“The content of the protocol is obviously a matter for the negotiations. Nevertheless, we anticipate a number of
technical improvements to the existing treaty, as well as possible changes to the non-resident withholding tax rates.
“Updating our double tax agreements with major trading partners is a priority for the government. The first round of
renegotiating a new double tax agreement with Australia took place in early April, and further rounds are expected to
take place later in the year.
“It is now the turn of our double tax agreement with the United States, which is expected to be updated in a single
round of negotiations on 16 June.
“We are aware that the United States has a very heavy double tax agreement work programme, so its willingness to
renegotiate the New Zealand treaty at this time demonstrates the strength of the very important relationship between our
two countries,” the Ministers said.
ENDS