Thursday, August 8, 2019
New Zealand and Switzerland have signed a protocol to their double tax agreement that will introduce provisions to prevent treaty abuse and enhance how the countries resolve tax disputes.
The DTA was originally signed in 1980. The protocol will enter into force once both countries have completed their domestic ratification procedures.
New Zealand's Revenue Minister, Stuart Nash, said that the measures included in the bill, based on the OECD's recommendation on tax base erosion and profit shifting, would improve New Zealand's ability to tax multinational companies and detect potential tax non-compliance.
He further disclosed that New Zealand expects to soon conclude a tax information exchange agreement with Guernsey.
"With the work we've already done and the steady ongoing work to update our DTAs, the anti-BEPS net is closing ever tighter. The opportunities to dodge tax are vanishing," said Nash.
In the year to March 2018, total New Zealand investment in Switzerland was approximately NZD246m (USD159m), while total Swiss investment in New Zealand was worth NZD2.29bn.