New Zealand Updates Tax Treaty With Hong Kong
New Zealand has updated its double tax agreement with Hong Kong to allow for the automatic exchange of information in tax matters between the two jurisdictions.
Once in force, the updated double tax treaty will require both Hong Kong and New Zealand to automatically exchange tax information with each other, in line with the G20 and Organisation for Economic Co-operation and Development (OECD) Common Reporting Standard.
“This will allow New Zealand to meet its international obligations to complete the first automatic exchange of information by September 30, 2018,” said Revenue Minister Judith Collins.
Under the global standard, New Zealand financial institutions must review their accounts and compile information to be reported.
New Zealand’s existing double tax agreement with Hong Kong was signed in 2010 but was limited to exchanges of information on request.
“The protocol will remove this limitation to allow automatic and spontaneous exchanges of tax information to take place,” said Collins.
The second Protocol will come into force once both signatories have completed their respective legal requirements.
