to the Convention between the Government of New Zealand and the Government of Finland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
At the signing today of the Convention between the Government of New Zealand and the Government of Finland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following additional provisions which shall form an integral part of that Convention.
1.
With reference to Article 2:
for the purposes of sub-paragraph (a) of paragraph 1 of Article 2, the New Zealand income tax does not include the bonus issue tax.
2.
With reference to Articles 3, 4, 8, 13 and 15:
the term “place of effective management”
means, in the case of a person other than an individual, the place of that person’s practical day to day management, irrespective of where the overriding control is exercised.
3.
With reference to Article 6:
the term “enjoyment”
means the enjoyment resulting from a right to use or occupy the real property held by the company.
4.
With reference to Article 7:
because New Zealand has a special basis for taxing insurance companies and because the provisions of Article 7 are not consistent with that basis, nothing in Article 7 shall affect the operation of any law of a Contracting State relating to the calculation of income and the computation of profits from insurance, provided that if the relevant laws in force in either State at the date of signature of that Convention are varied (otherwise than in minor respects so as not to affect its general character) the Contracting States shall consult each other with a view to agreeing to any amendment of this paragraph that may be appropriate.
5.
With reference to Article 10:
the term “tax on the company’s undistributed profits”
shall not include the New Zealand bonus issue tax.
6.
With reference to Articles 10, 11 and 12:
if in any future double taxation convention with any other State, being a member of the Organisation for Economic Co-operation and Development.
(a)
Finland should limit its taxation at source of dividends, or
(b)
New Zealand should limit its taxation at source of dividends, interest or royalties
to a rate lower than the one provided for in any of such articles, the two Governments will undertake to review the appropriate provisions with a view to providing the same treatment.
7.
If, at any time after the date of signature of this Protocol, New Zealand shall include an Article on non-discrimination in any of its double taxation conventions, the Government of New Zealand shall without undue delay inform the Government of Finland and shall enter into negotiations with the Government of Finland with a view to including such an Article in the Convention signed today.
This Protocol shall remain in force as long as the Convention, signed today, remains in force.