International tax laws to be reviewed

A government discussion document to be released before the end of this year will take a fresh look at New Zealand's international tax rules, Revenue Minister Peter Dunne said today.

He said the main focus of the document would be the taxation of outbound, non-portfolio investment.

"In particular the Government is committed to taking a fresh look at whether we should continue with our current controlled foreign company tax rules," Mr Dunne said in a statement.

"That will include considering the merits of introducing an active-passive distinction between different types of income, which is common practice internationally."

Mr Dunne said the discussion document would canvass options for changing those rules, as well as any associated changes to the conduit and thin capitalisation rules.

"It will look at whether any adjustment should be made to New Zealand's long-standing treaty policy on non-resident withholding tax rates on dividends, interest and royalties.

"Proposals will take into account the objectives set out in the Business Tax Review discussion document."

- NZPA