The Agreement between Canada and New Zealand replaces the 1980 Agreement between the two countries with a more modern agreement. 1. States Parties undertake to provide assistance to each other in the collection of tax claims. This aid shall not be limited by Articles 1 and 2. The competent authorities of the States Parties shall agree on the nature and effect of this article, including the agreement, to ensure a comparable level of assistance. The DBA applies to source deductions as of August 1, 2015; and other provisions, the agreement applies for income years beginning on April 1, 2016 for New Zealand and January 1, 2016 for Canada. 5. Where a person other than a natural person resides in both States Parties pursuant to paragraph 1 of this article, the competent authorities of the States Parties shall endeavour by mutual agreement to clarify the matter taking into account their place of effective management, the place of its establishment or establishment and other relevant factors. In the absence of such an agreement, that person is not entitled to a tax reduction or exemption under the agreement. However, such dividends may also be taxed in the Contracting State in which the company paying the dividends is established and under the laws of that State, but if the beneficiary is the beneficial owner of the dividends, the amount of tax so levied may not exceed 15% of the gross amount of the dividends. The competent authorities of the States Parties shall regulate by mutual agreement the nature and effect of such restriction. If he is a national of both States or of one of the two States, the competent authorities of the States Parties shall decide by mutual agreement on the matter. New Zealand has 39 DTAs with other countries, including Canada.
These agreements are usually concluded with close trading and investment partners. Welcoming the new agreement with Canada, Minister McClay said, ”Canada is an important investment and trade partner for New Zealand. The new tax treaty updates and modernizes the 1980 agreement between the two countries and is a testament to the strong relationship we continue to share. On 2 July 2015, New Zealand Finance Minister Todd McClay announced the entry into force of the New Zealand Double Taxation Convention (DBA) on 26 June 2015. The new DBA was signed on 3 May 2012 and the protocol thereto on 12 September 2014. The new DBA replaces the 1980 contract. 3. For the purposes of paragraph 3 of Article XXII (Consultation) of the General Agreement on Trade in Services of the Marrakesh Agreement Establishing the World Trade Organization, concluded at Marrakesh on 15 April 1994 and 15 April 1994, the States Parties agree that, notwithstanding this paragraph, any dispute between them as to whether a measure falls within the scope of this Convention, The Council for Trade in Services may be subject to the procedure, in accordance with this paragraph, only with the agreement of both States Parties. Doubts as to the interpretation of this paragraph shall be removed in accordance with article 23, paragraph 4, or, in the absence of agreement in accordance with that procedure, in accordance with another procedure agreed upon by both States Parties. 4.
The competent authorities of the Contracting States shall endeavour to eliminate, by mutual agreement, any difficulty or doubt arising from the interpretation or application of the Convention. 1. This Convention shall not affect the fiscal privileges of members of diplomatic missions or consular representations, in accordance with the general rules of international law or the provisions of special agreements. . . .