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As part of its ongoing programme of developing closer economic and taxation co-operation with other countries, the Isle of Man on July 27 concluded agreements with the government of New Zealand for the exchange of information in tax matters and the avoidance of double taxation.
The signing ceremony took place at New Zealand House in London, United Kingdom, between Allan Bell, the Isle of Man’s Treasury Minister, and the New Zealand High Commissioner to the United Kingdom, Derek Leask.
The two agreements are:
- A Tax Information Exchange Agreement (TIEA) based on the Organisation for Economic Co-operation and Development (OECD) model; and
- A convention for the avoidance of double taxation, which will allocate taxation rights over certain income of individuals and establish a mutual agreement procedure in respect of transfer pricing adjustments.
The Isle of Man has now signed 17 agreements that meet the OECD international standard on tax co-operation and transparency.
Minister Bell commented, "Part of the Isle of Man’s economy is based on financial services, and it is vital such financial services operators adhere to the standards required by the global economic community. The Isle of Man has been committed to the OECD standards of transparency and effective exchange of information for tax purposes for over eight years and this latest TIEA is part of our continuing work and mutual co-operation not only with New Zealand, but with all other countries with which we have agreements. This agreement represents the start of a new phase in relations between New Zealand and the Isle of Man and I expect it will lead to further political, economic and cultural ties.”
The diverse and flexible economy of the Isle of Man, coupled with prudent financial management, high reserves and low debt, have led to both Standard & Poor’s and Moody’s maintaining the island’s 'AAA' credit rating.
“The signing and ratifying of 15 TIEAs and the double taxation agreements with Estonia and Belgium, coupled with our decision to move to automatic exchange of information under the European Union Savings Directive, further strengthens the Island’s reputation as a leading international business centre,” Bell concluded.
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