It is stated that the terms and conditions set out in the List Agreement are arrangements with the Government of Canada to provide double taxation relief in respect of income tax and income tax levied under the Income Tax Act, 1976 and income taxes levied by the Government of Canada. shall take effect in respect of income tax and deductible tax levied under this Act, notwithstanding the provisions of this Act or any other decree, on the basis of the content of the Convention. Under the new agreement, the withholding tax rate on dividends will increase from 15% to a maximum of five percent for an investor who owns at least 10% of the shares of the company paying dividends. 1. This Convention is without prejudice to the fiscal privileges of members of diplomatic or consular missions under the general rules of international law or the provisions of special conventions. The DTA applies to withholding taxes from 1 August 2015; and for the other provisions, the Agreement applies to years of income beginning on or after April 1, 2016 for New Zealand and January 1, 2016 for Canada. DESIRING to conclude an agreement on the prevention of double taxation and the prevention of fiscal evasion with respect to taxes on income, the full text of the new double taxation agreement between New Zealand and Canada is www.taxpolicy.ird.govt.nz/tax-treaties An updated double taxation agreement (DTA) between Canada and New Zealand entered into force on June 26, 2015. The new agreement will generally reduce withholding tax (WHT) on dividends, interest and royalties between the two countries and has been welcomed by investors from both countries. The amendments will come into force on August 1, 2015. 3.
For the purposes of Article XXII(3) (consultation) of the General Agreement on Trade in Services of the Marrakesh Agreement Establishing the World Trade Organisation, concluded in Marrakesh on 15 April 1994, the States Parties agree that, notwithstanding this paragraph, any dispute between them as to whether a measure falls within the scope of this Agreement may be brought before the Council for Trade in Services. — as provided for in this paragraph, only with the consent of both States Parties. Any doubt as to the interpretation of this paragraph shall be dispelled in accordance with article 23, paragraph 4, or, in the absence of agreement under this procedure, in accordance with any other procedure agreed upon by both States Parties. In the case of Canada, double taxation should be avoided as follows: (1) Contracting States undertake to assist each other in the collection of tax debts. This support shall not be limited by Articles 1 and 2. The competent authorities of the States Parties shall determine by mutual agreement the modalities for the application of this Article, including the agreement to ensure a comparable level of support. 5. The competent authorities of the Contracting States may consult each other on the elimination of double taxation in cases not provided for in the Convention and communicate directly with each other for the purposes of the application of the Convention. The main feature of the agreement is the reduction of WHT rates for dividends, royalties and interest payments. 5. Where, pursuant to paragraph 1, a person other than a natural person resides in both Contracting States, the competent authorities of the States Parties shall endeavour, by mutual agreement, to settle the matter taking into account their place of effective management, the place where they have their registered office or any other composition and all other relevant factors.
In the absence of such an agreement, that person is not entitled to an exemption or exemption under the Convention. If New Zealand, at any time after the date of signature, includes an article of non-discrimination in one of its double taxation treaties, discussions shall take place between the States Parties to decide whether an article of non-discrimination should be included in this Convention. “Canada is an important investment and trade partner for New Zealand. The new tax treaty updates and modernizes the 1980 agreement between our two countries and demonstrates the strong relationship we continue to share,” said Mr. McClay. Canada has signed double taxation agreements (DTAs) with the following countries: McClay says the new agreement, which reduces withholding taxes on dividends, interest and royalties between the two countries, will be good news for businesses and investors in both countries. The Agreement between Canada and New Zealand replaces the 1980 Agreement between the two countries with a more modern agreement. All DTAs include the MAP as a cost-effective dispute settlement mechanism. As a general rule, the MAGP only provides for the competent authorities to try to resolve the problem. However, some provisions of the MAGP are supplemented by arbitration provisions aimed at eliminating cases where the competent authorities cannot reach an agreement.
See the Second Protocol to the 1982 Convention. (2) The competent authority referred to in paragraph 1 of this Article shall endeavour to resolve the matter by mutual agreement with the competent authority of the other Contracting State if it considers that the objection is justified and if it is unable to reach a satisfactory solution itself. Any agreement reached shall be implemented without prejudice to the time limits set by the domestic law of the States Parties. .