NZ-Samoa double tax agreement to boost trade
The recently signed double tax agreement between New Zealand and Samoa is poised to boost trade between the two countries. However, the agreement will come into force later this year.<!--more-->
<a href="https://pacifictradeinvest.com/wp/wp-content/uploads/2015/08/rsz_shipping-container-small.jpg"><img class="alignleft size-full wp-image-7244" src="https://pacifictradeinvest.com/wp/wp-content/uploads/2015/08/rsz_shipping-container-small.jpg" alt="High quality 3D render shipping container during transport" width="138" height="104" /></a>The agreement New Zealand and its second largest Pacific Island trading partner was signed in July by NZ Prime Minister John Key and his Samoan counterpart Tuilaepa Sailele Malielegaoi.
Prime Minister Key said the agreement was a significant one that would further strengthen the close relationship between the two countries.
“Importantly, the tax agreement represents a further extension of New Zealand’s tax treaty network into the Pacific. Once the agreement enters into force, it will bring New Zealand’s network of tax treaties to a total of 40,” Mr Key said during the signing of the agreement.
Double tax agreements help to reduce tax barriers to two-way trade and investment by preventing cross-border income being taxed twice, therefore giving certainty about how that income will be taxed. They also lower withholding taxes, making it less costly for businesses in one country to invest in the other, and assist tax administration.
The agreement will replace the existing tax information exchange agreement with Samoa which is more limited in its scope, when it comes into force later this year.