New Zealand has published the Double Tax Agreements (Austria) Order 2024, which facilitates the ratification of the protocol to the 2006 income tax treaty with Austria.
This protocol, signed on 12 September 2023, marks the first amendment to the original treaty and will come into force once the necessary ratification instruments are exchanged.
Key details include:
- Withholding taxes: The protocol will apply to withholding taxes from the first day of the second month following its entry into force.
- Other taxes: For other taxes in Austria, it will take effect from 1 January of the year following its entry into force, while in New Zealand, it will apply from 1 April of the following year.
A Double Tax Agreement (DTA) is a contract between two countries (referred to as contracting states) designed to prevent or reduce territorial double taxation of the same income by both nations. Any changes or additions to such an agreement are referred to as a “protocol”.
This update aims to enhance tax cooperation between New Zealand and Austria, aligning with international standards and facilitating smoother cross-border trade and investment.
