New Zealand Embassy Tokyo, Japan
New Zealand – Japan Double Taxation Agreement
Japan and New Zealand signed a new Double Tax Agreement on Monday 10 December in Tokyo to replace the existing 1963 treaty. New Zealand’s Minister of Revenue Peter Dunne said “New Zealand has a long standing relationship with Japan. In fact, this year marks the 60th anniversary of the establishment of formal diplomatic relations with Japan.
Japan is one of New Zealand’s largest trading partners and at nearly 50 years old, the existing treaty is the oldest in our network. In recognition of the volume of trade, it is important to update the tax treaty.”
A key feature of the updated agreement will be lower withholding taxes on interest, dividend and royalty payments between the two countries making it less costly for businesses to invest in each country and to bring profits home for reinvestment or distribution to shareholders.
Double tax agreements help to reduce tax impediments to trade and investment between countries by preventing cross-border business income being taxed twice and therefore give greater certainty about how that income will be taxed.
The English text of the new double tax agreement is available here.