New Zealand signed a new double tax agreement (DTA) with Vietnam on August 5, 2013.
When will become effective, dividends will be subject to a maximum withholding tax of 5% where the beneficial owner is a company directly holding at least 50% of the voting power in the paying company. A maximum 15% rate will apply in all other cases. The maximum withholding tax rate for both interest and royalties will be 10%. Once ratified the Vietnamese treaty will become New Zealand’s 39th DTA. A good network of double tax agreements is important to New Zealand as it develops its trading links with the countries of South East Asia.
