The U.S. Treasury Department has signed a protocol updating the current income tax treaty between the U.S. and New Zealand.
In a ceremony held at the Treasury Department, Deputy Secretary Robert M. Kimmitt and New Zealand's Ambassador to the United States Roy Ferguson signed the document, which brings the existing tax treaty into closer conformity with current U.S. tax treaty policy.
The new agreement provides for the elimination of source-country taxation of certain direct dividends, and interest paid to banks and other financial enterprises when the payer of the interest is not a related party. The new protocol also reduces the existing treaty's limit on taxation of cross-border payments of royalties to 5 percent.
The new protocol introduces a number of technical updates to the existing treaty, and also contains comprehensive rules regarding limitation on benefits, non-discrimination and exchange of information.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access