Revenue Minister Judith Collins has today signed a new tax protocol between New Zealand and Hong Kong. The protocol updates the existing double tax agreement between New Zealand and Hong Kong, to allow full exchange of information on tax matters between the two jurisdictions, reports Business Scoop.
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 OECD Automatic Exchange of Information global standard.
“This will allow New Zealand to meet its international obligations to complete the first automatic exchange of information by 30 September 2018,” Ms Collins says.
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,” says Ms Collins.
The Second Protocol will come into force once both signatories have completed their respective legal requirements.