Tax agreement takes effect, Vietnam-NZ trade ups

Tax agreement takes effect, Vietnam-NZ trade ups

The Avoidance of Double Taxation Agreement (DTA) between Vietnam and New Zealand, taking effect as from May 7, will help forward the bilateral trade ties, NZ Revenue and Associate Tourism Minister has said.

Illustrative image (Source: VNA)

The minister added the new pact will help the two sides’ investors cut down investment costs and tax levied on dividends, income and franchising fees, noting that the New Zealand Government always gives priority to maintaining and expanding DTAs with its trade partners.

DTAs boost trading activities between involved countries as well as investment by helping investors avoid double taxation.

The document between Vietnam and New Zealand was signed following the talks between Governor General Jerry Mateparae and President Truong Tan Sang on August 5, 2013.

To date, the Southwestern-Pacific country and its major trade and investment partners have reached 39 DTAs.

Two-way trade between Vietnam and New Zealand reached 187 million USD in 2001, increasing to 750 USD million USD in 2012 and 723 million USD in 2013.

In the first four months of this year, Vietnam’s exports to the country hit a record high of 90 million USD, spawning optimism that bilateral trade could reach 1 billion USD by the end of 2015.

Vietnam is currently the 21st largest exporter of New Zealand with its main export products including footwear, wood and timber products, seafood, garment and cashew nuts. It primarily imports milk and dairy products from the country.-VNA

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