Auckland, 1 December 2010: Hong Kong Financial Secretary John Tsang said that the 'Double Taxation Agreement' he signed today with New Zealand Finance Minister Bill English will reduce tax barriers to cross-border trade and investment.

Speaking at a breakfast hosted by the Hong Kong New Zealand Business Association (HKNZBA) and KVB Kunlun International in Auckland, Mr Tsang told senior finance professionals, trade representatives, economists and business people that the agreement will also assist tax administration on both sides.

The agreement was signed swiftly under the closer economic and trade relationship that followed the free trade agreement signed between New Zealand and the Hong Kong Special Administrative Region in March this year.

New Zealand's policy for reducing double taxation is to unilaterally provide a tax credit to taxpayers for tax already paid overseas on income that is also declarable in New Zealand, with the credit amount up to the tax payable on that income in New Zealand.

However, the 'Double Taxation Agreement' specifically excludes certain forms of double taxation, reduces withholding tax on bilateral investment, clearly stipulates the method for calculating certain profits, exempts some short-term activities and ensures the smooth exchange of information between international tax authorities.

After the meeting, Mr Tsang visited the upgraded superyacht lifting facility located at Orams Marine Village, a key facility in a multi-million dollar investment in New Zealand's marine business.