WELLINGTON, Sept. 26 (Xinhua) -- New Zealand and Japan on Thursday exchanged diplomatic notes for a new double tax agreement aimed at increasing trade and investment between the two nations.
"The New Zealand government is extremely supportive of opportunities to increase trade with Japan and this agreement will further assist by reducing tax impediments to cross-border trade and investment. It will also assist tax authorities of the two countries to detect and prevent tax avoidance and evasion," New Zealand Revenue Minister Todd McClay said in a statement.
The new double tax agreement was a vast improvement over the existing 1963 agreement between Japan and New Zealand, he said.
"Japan is New Zealand's fourth largest trade and investment partner and the new agreement builds on our recent agreements with Australia, the United States, Singapore and Hong Kong," said McClay.
The updated agreement would come into effect 30 days from the exchange of notes.
For withholding taxes, the new agreement will apply from Jan. 1 next year. For New Zealand income tax it will apply for income years beginning on or after April 1 next year and for Japanese income tax it will apply for income years beginning on or after Jan. 1.