If you`re planning to do business or work in New Zealand, it`s important to know about the country`s double tax agreements (DTAs). These agreements ensure that you`re not taxed twice on the same income in both your home country and New Zealand.
New Zealand currently has DTAs with over 40 countries, including Australia, Canada, China, France, Germany, Japan, the United Kingdom, and the United States. Here`s a closer look at some of the countries that New Zealand has DTAs with:
Australia: The DTA between Australia and New Zealand ensures that you only pay tax in one country on your employment or business income. If you`re a resident of one country and work in the other, you`ll only be taxed on your income in your country of residence.
Canada: If you live in Canada and earn income in New Zealand, you`ll only be taxed in Canada under the DTA. The agreement also ensures that pensions and social security payments are only taxed in your country of residence.
China: The DTA between China and New Zealand helps to promote trade and investment between the two countries. It ensures that businesses and individuals are not taxed twice on their income, and outlines the rules for determining which country has the right to tax specific types of income.
France: The DTA between France and New Zealand covers taxes on income, capital gains, and inheritance. It also includes provisions on the taxation of cross-border services, pensions, and social security payments.
Japan: The DTA between Japan and New Zealand is designed to prevent double taxation and to promote cross-border trade and investment. It covers taxes on income, capital gains, and dividends, and outlines the rules for determining which country has the right to tax specific types of income.
United States: The DTA between the United States and New Zealand covers taxes on income, capital gains, and dividends. It ensures that individuals and businesses are not taxed twice on their income, and includes provisions for the taxation of cross-border services and pensions.
Overall, having a DTA with New Zealand can make it easier for you to do business or work in the country without being subject to double taxation. If you`re planning to move to New Zealand or do business in the country, it`s worth checking to see if your home country has a DTA with New Zealand.