Tax agreement signed with South Africa

By BRIAN FALLOW

New Zealand has signed a tax agreement with South Africa.

Such agreements are intended to avoid double taxation and to make tax evasion harder.

Many short-term business activities carried out in the other country will be exempt in that country.

But the income earned by sportspeople, musicians, actors and "television artistes" will be taxable where the income is not earned in their home country.

Revenue Minister Michael Cullen said the initiative would help forge stronger economic links between the two countries.

South Africa is a significant emerging market for New Zealand. In 1999, New Zealand sent $72 million of exports to South Africa. Last year the figure was $114 million.

The deal is expected to come into force in the 2002-03 financial year.