KEY POINTS:
New Zealand has signed a double tax agreement with the Czech Republic, Revenue Minister Peter Dunne announced today.
He said that when it was in force the agreement would help reduce tax impediments to trade and investment between the two countries.
"Current levels of trade and investment between New Zealand and the Czech Republic are modest but there is potential for growth, given that the former Czechoslovakia used to be one of our larger export markets in Central Europe," Mr Dunne said in a statement.
"New Zealand exports to the Czech Republic in the year to December 2004 consisted mainly of wool and were worth nearly $4 million.
"Czech Republic exports to New Zealand for the same year consisted mainly of motor cars and were worth more than $27 million."
Double tax agreements prevent cross-border income being taxed twice, give greater certainty about how that income will be taxes, and reduced compliance costs.
The agreement will come into force once both parties have given legal effect to it.
New Zealand already has double tax agreements with 33 other jurisdictions.
- NZPA
