The New Zealand Revenue Minister has exchanged diplomatic notes for tax treaty with Japan for reduces taxobstruction to the cross-border trade and investment. This reconsidered agreement will help the tax authorities recognize and prevent tax avoidance and evasion.
This updated double tax agreement (DTA) will enter into force in the next 30 days. Under the reconsidered provisions of the treaty a maximum 15% withholding tax will be applied to dividends and 10% will be on interest and that on royalties no more than 5%. The double tax treaty will apply on Japanese income tax from January 1, 2014 and for New Zealand income tax, it will apply from April 1, 2014.
