BH 1 Double tax agreements
Meaning

(1)

Double tax agreement means an agreement that—

(a)

has been negotiated for 1 or more of the purposes set out in subsection (2); and

(b)

has been agreed between—

(i)

1 or more governments of territories outside New Zealand and the government of New Zealand; or

(ii)

the Taipei Economic and Cultural Office in New Zealand and the New Zealand Commerce and Industry Office; and

(c)

has entered into force as a result of a declaration by the Governor-General by Order in Council under subsection (3).

Purposes

(2)

The following are the purposes for which a double tax agreement may be negotiated:

(a)

to provide relief from double taxation:

(b)

to provide relief from tax:

(c)

to tax the income derived by non-residents from any source in New Zealand:

(d)

to determine the income to be attributed to non-residents or their agencies, branches, or establishments in New Zealand:

(e)

to determine the income to be attributed to New Zealand residents who have special relationships with non-residents:

(f)

to prevent fiscal evasion:

(g)

to facilitate the exchange of information:

(h)

to assist in recovering unpaid tax.

Entry into force

(3)

An agreement to which subsection (1)(a) and (b) apply comes into force as declared by the Governor-General by Order in Council and on the date determined under the agreement.

Secondary legislation

(3B)

An Order in Council under subsection (3) is secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Overriding effect

(4)

Despite anything in this Act, except subsection (5), or section RF 11C (Interest paid by non-resident companies to non-residents) or (5B) or section BG 1 or GB 54 (which relate to tax avoidance) or, or in any other Inland Revenue Act or the Official Information Act 1982 or the Privacy Act 2020, a double tax agreement has effect in relation to—

(a)

income tax:

(b)

any other tax imposed by this Act:

(c)

the exchange of information that relates to a tax, as defined in paragraphs (a)(i) to (v) of the definition of tax in section 3 of the Tax Administration Act 1994.

Agreement for recovery of tax

(5)

An agreement that provides for the recovery of unpaid tax is subject to Part 10A of the Tax Administration Act 1994.

Foreign account information-sharing agreements

(5B)

A foreign account information-sharing agreement is subject to Part 11B of the Tax Administration Act 1994.

Reference to profits

(6)

A reference in a double tax agreement to the profits of an activity or business is to be read, if possible, as a reference to the amount that would be a person’s net income if that activity or business were their only activity or business.

Reference to unrelated persons

(7)

A reference in a double tax agreement to 2 persons being unrelated is to be read, if possible, as a reference to 2 persons being not associated.

Defined in this Act: associated, business, double tax agreement, income, income tax, Inland Revenue Acts, net income, New Zealand, New Zealand resident, non-resident, pay, source in New Zealand, tax

Compare: 2004 No 35 s BH 1

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationPCO must publish it on the legislation website and notify it in the GazetteLA19 s 69(1)(c)
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section BH 1(1)(b)(i): amended (with effect on 21 October 2013), on 21 February 2017, by section 4 of the Taxation (Business Tax, Exchange of Information, and Remedial Matters) Act 2017 (2017 No 3).

Section BH 1(3): replaced, on 30 March 2017, by section 6(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section BH 1(3B) heading: inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section BH 1(3B): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).

Section BH 1(4): amended, on 1 December 2020, by section 217 of the Privacy Act 2020 (2020 No 31).

Section BH 1(4): amended, on 1 July 2018, by section 4(2) (and see section 4(4) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).

Section BH 1(4): amended (with effect on 1 April 2008), on 27 June 2018, by section 4(1) (and see section 4(3) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).

Section BH 1(4): amended, on 30 March 2017, by section 6(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).

Section BH 1(5B) heading: inserted, on 1 July 2014, by section 6(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section BH 1(5B): inserted, on 1 July 2014, by section 6(2) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).

Section BH 1(7) heading: added, on 8 December 2009, by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section BH 1(7): added, on 8 December 2009, by section 5 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).

Section BH 1 list of defined terms associated: inserted, on 8 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).