31 Oct 2012

PNG and NZ sign tax agreement

5:23 pm on 31 October 2012

Papua New Guinea and New Zealand have signed a tax agreement aimed at securing business investment flows without the threat of being exposed to tax evasion.

The PNG foreign minister, Rimbink Pato, and his New Zealand counterpart, Murray McCully, signed the Avoidance of Double Taxation and Tax Evasion Agreement in Port Moresby.

Mr Pato says the agreement means companies and individuals doing business in both countries should not be taxed twice by the contracting parties for repatriation of profits as well as for receiving it.

While in New Zealand this concerns income tax, in PNG it applies to among others, foreign contractor withholding tax, management fee withholding tax and business payments tax.