Hon Todd McClay
Minister of Revenue
10 February 2014
Tax agreement with PNG now in force
A new double tax agreement between New Zealand and Papua New Guinea is now in force, Revenue Minister Todd McClay
announced today.
“Trade in the Pacific and particularly with Papua New Guinea is taking on greater importance for New Zealand. This
agreement will strengthen international cross-border trade and investment partnerships for the benefit of businesses,
investors and taxpayers in both countries,” Mr McClay says.
“The agreement recently came into effect after being signed by both countries in 2012. It will give businesses greater
certainty over the tax treatment of cross-border investment income, reduce compliance costs for both New Zealand and PNG
investors, and will lower withholding tax rates.”
“This agreement further strengthens our network of double tax agreements, and widens New Zealand’s tax information
exchange network, which is important in helping authorities prevent tax evasion and avoidance.”
Double tax agreements help encourage growth and promote cross-border trade by preventing businesses and individuals from
being taxed twice on income earned in the other country.
“This Government wants New Zealand businesses to operate competitively on the global stage. Double tax agreements help
provide the business and tax environment to support them to do that,” Mr McClay says.
The PNG agreement brings the number of double tax agreements New Zealand has with other countries to 38. The full text
of the New Zealand-PNG double tax agreement is available at www.taxpolicy.ird.govt.nz
ENDS