The United States and New Zealand have had a double tax agreement in place since 1982. This agreement is designed to prevent individuals and companies from being taxed twice on the same income.

Under the agreement, residents of both countries are taxed only once on income received from the other country. This means that if you are a US resident working in New Zealand, you will only be taxed by New Zealand on your income from that country. Similarly, if you are a New Zealand resident working in the US, you will only be taxed by the US on your income from that country.

The double tax agreement also includes provisions for the exchange of information between the two countries. This allows tax authorities to share information about individuals and companies to ensure that both countries are receiving the correct amount of tax revenue.

One important aspect of the double tax agreement is the definition of a “resident” for tax purposes. In general, a person is considered a resident of the country in which they have a permanent home. However, there are specific rules for determining residency for tax purposes, and it is important to consult with a tax professional if you have questions about your residency status.

The double tax agreement also outlines specific rules for certain types of income, such as dividends, interest, and royalties. These rules ensure that income from these sources is taxed only once.

In conclusion, the US and New Zealand double tax agreement is an important framework that helps individuals and companies avoid being taxed twice on the same income. If you are a US resident working in New Zealand, or a New Zealand resident working in the US, it is important to understand the rules of the double tax agreement and consult with a tax professional if you have any questions.

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