Part B
Core provisions
Double tax agreements
BH 1Double tax agreements
Double tax agreement means an agreement that—
- has been negotiated for 1 or more of the purposes set out in subsection (2); and
- has been agreed between—
- 1 or more governments of territories outside New Zealand and the government of New Zealand; or
- the Taipei Economic and Cultural Office in New Zealand and the New Zealand Commerce and Industry Office; and
- 1 or more governments of territories outside New Zealand and the government of New Zealand; or
- has entered into force as a result of a declaration by the Governor-General by Order in Council under subsection (3).
The following are the purposes for which a double tax agreement may be negotiated:
- to provide relief from double taxation:
- to provide relief from tax:
- to tax the income derived by non-residents from any source in New Zealand:
- to determine the income to be attributed to non-residents or their agencies, branches, or establishments in New Zealand:
- to determine the income to be attributed to New Zealand residents who have special relationships with non-residents:
- to prevent fiscal evasion:
- to facilitate the exchange of information:
- to assist in recovering unpaid tax.
An agreement to which subsection (1)(a) and (b) apply comes into force as declared by the Governor-General by Order in Council and on the date determined under the agreement.
An Order in Council under subsection (3) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
Despite anything in this Act, except subsection (5), or section RF 11C (Interest paid by non-resident companies to non-residents) or (5B) or section BG 1 or GB 54 (which relate to tax avoidance) or, or in any other Inland Revenue Act or the Official Information Act 1982 or the Privacy Act 2020, a double tax agreement has effect in relation to—
- income tax:
- any other tax imposed by this Act:
- the exchange of information that relates to a tax, as defined in paragraphs (a)(i) to (v) of the definition of tax in section 3 of the Tax Administration Act 1994.
An agreement that provides for the recovery of unpaid tax is subject to Part 10A of the Tax Administration Act 1994.
A foreign account information-sharing agreement is subject to Part 11B of the Tax Administration Act 1994.
A reference in a double tax agreement to the profits of an activity or business is to be read, if possible, as a reference to the amount that would be a person's net income if that activity or business were their only activity or business.
A reference in a double tax agreement to 2 persons being unrelated is to be read, if possible, as a reference to 2 persons being not associated.
Compare
- 2004 No 35 s BH 1
Notes
- Section BH 1(1)(b)(i): amended (with effect on 21 October 2013), on , by section 4 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).
- Section BH 1(3): replaced, on , by section 6(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
- Section BH 1(3B) heading: inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
- Section BH 1(3B): inserted, on , by section 3 of the Secondary Legislation Act 2021 (2021 No 7).
- Section BH 1(4): amended, on , by section 217 of the Privacy Act 2020 (2020 No 31).
- Section BH 1(4): amended, on , by section 4(2) (and see section 4(4) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
- Section BH 1(4): amended (with effect on 1 April 2008), on , by section 4(1) (and see section 4(3) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).
- Section BH 1(4): amended, on , by section 6(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
- Section BH 1(5B) heading: inserted, on , by section 6(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
- Section BH 1(5B): inserted, on , by section 6(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
- Section BH 1(7) heading: added, on , by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
- Section BH 1(7): added, on , by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
- Section BH 1 list of defined terms associated: inserted, on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).