(Archived Content)
WASHINGTON – The U.S. Department of the Treasury today announced the entry into force of a protocol amending the income tax treaty with New Zealand. Approved by the U.S. Senate on July 15, 2010, the protocol officially entered into force today when the United States notified New Zealand that it had completed the required procedures for bringing the protocol into force.
Provisions of the protocol include:
- Elimination of source-country withholding tax on certain direct dividend payments.
- Elimination of source-country withholding tax on certain interest payments, including interest paid to certain banks and financial enterprises.
- Reduced source-country withholding tax on all royalty payments.
- A comprehensive limitation on benefits provision.
- A comprehensive provision allowing for full exchange of information between the U.S. and New Zealand revenue authorities.
With respect to taxes withheld at source, the protocol shall have effect for amounts paid or credited on or after January 1, 2011. For all other taxes, the protocol will generally have effect in the United States for taxable periods starting on or after January 1, 2011, and in New Zealand for taxable periods starting on or after April 1, 2011.
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