Revenue Minister Peter Dunne has welcomed the coming into force of the new double tax agreement between New Zealand and Turkey, saying the agreement “is good news for businesses and investors in both countries”.
“Double tax agreements provide trade and investment advantages for businesses and investors by regulating how transactions should be taxed between the two countries,” Mr Dunne said.
“For businesses, this provides greater certainty and reduces the likelihood of being taxed twice on cross-border transactions, while investors will generally be better off as a result of lower withholding taxes on cross-border investment returns.
“In addition, the agreements help tax administrations in both countries to identify and prevent tax avoidance and evasion by allowing them to exchange information and assist in the collection of taxes,” he said.
The new tax agreement with Turkey was signed in April last year by Prime Minister John Key.
Double tax agreements come into force once each country has completed its own legal requirements, which in New Zealand is by Order in Council. This has now been achieved in both countries.
The text of the new double tax agreement between New Zealand and the Republic of Turkey is available on Inland Revenue’s tax policy website at www.taxpolicy.ird.govt.nz