The Double Taxation Agreement (DTA) between India and New Zealand was signed on June 26, 1986, and came into effect on October 18, 1987. The purpose of the agreement is to avoid double taxation of income that is earned in either country by residents of the other country.
Under the DTA, income is taxed in the country where it is earned, but there are also provisions to prevent double taxation. This means that if a resident of India earns income from New Zealand, they will only have to pay tax on that income in one country.
The DTA between India and New Zealand covers a range of types of income, including income from employment, dividends, interest, royalties, and gains from the sale of assets. The agreement also has provisions for the exchange of information between the two countries to ensure that both countries can enforce their tax laws effectively.
One of the benefits of the DTA is that it can help to promote trade and investment between India and New Zealand. By reducing the tax burden on businesses and individuals, the agreement can make it easier for companies to do business across borders and for individuals to take up work or investment opportunities in each other`s countries.
Overall, the DTA between India and New Zealand is an important agreement that helps to promote economic cooperation and development between the two countries. For businesses and individuals who are looking to work or invest in either country, it is important to be aware of the provisions of the agreement and seek professional advice if necessary to ensure compliance with the tax laws of both countries.