Austria-New Zealand Tax Agreement Enters Into Force

by Mary Swire, Tax-News.com, Hong Kong

05 December 2007

A new double tax agreement between Austria and New Zealand has entered into force, New Zealand Revenue Minister Peter Dunne has announced.

The agreement will take effect in both countries from 1 March 2008 for withholding taxes. For other taxes it will generally take effect from 1 April 2008 in New Zealand and from 1 January 2008 in Austria.

“I welcome the entry into force of our new double tax agreement with Austria, with whom we have a small but growing trade and investment relationship,” Dunne commented.

New Zealand exports to Austria amounted to NZ$26 million in the year ended June 2007, and consisted mainly of meat, transistors and electrical equipment for cars. Imports from Austria for the same period amounted to NZ$193 million, and mainly consisted of motor vehicles, records and tapes, base metal mountings and added sugar waters.

“New Zealand is now party to 34 double tax agreements, which play an important role in reducing the costs of doing business and forging stronger economic links between two countries," Dunne noted.

“Double tax agreements remove tax obstacles to cross-border trade and investment and prevent businesses being taxed twice on the resulting income. They also give businesses greater certainty about how cross-border investment income will be taxed, reduce compliance costs and lower tax on some income,” the Revenue Minister concluded.

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