A new income tax treaty between New Zealand and Canada, signed in 2012, has entered into force. The new treaty includes provisions for reduced withholding tax rates on interest, dividends, and royalties, effective from 1 August 2015.
In a second development, legislation to implement the Inland Revenue’s business transformation plan has been introduced into Parliament. The bill would allow for electronic communications with taxpayers and for information sharing in a greater range of circumstances. There are also provisions for new rules for collecting tax on employee share scheme benefits. From 1 April 2017, employers would be able to deduct tax on benefits employees receive from employee share schemes under the PAYE regime. Currently, employees are responsible for meeting their tax obligations on employee share benefits.
Read a July 2015 report [PDF 516 KB] prepared by the KPMG member firm in New Zealand: Tax Mail
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.