New Zealand and Papua New Guinea have signed a double tax agreement, Foreign Affairs Minister Murray McCully and Revenue Minister Peter Dunne announced today.
Mr Dunne said that the new double tax agreement signed by Mr McCully and PNG’s Foreign Minister Rimbink Pato in the PNG capital, Port Moresby, last night will help reduce tax impediments for doing business between the two countries.
“Papua New Guinea is of increasing importance for New Zealand businesses. The scope to expand trade and economic ties is huge,” Mr McCully said.
“Papua New Guinea’s economy is growing at nearly 10 per cent per year on the back of huge gas and minerals developments, providing outstanding opportunities for New Zealand businesspeople,” he said.
Mr Dunne said the double tax agreement will help the two countries do business.
“New Zealand has now signed 38 double tax agreements,” he said.
“These agreements prevent cross-border income being taxed twice and give greater certainty about how that income is to be taxed. They also reduce compliance costs for certain activities and lower tax on some income,” Mr Dunne said.
The agreement will come into force once both countries give legal effect to it, which in New Zealand's case will occur through Order in Council.
The text of the agreement is available at www.taxpolicy.ird.govt.nz.