New Delhi: The government has notified the third protocol between India and New Zealand for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
The protocol updates the existing framework of exchange of tax related information to latest international standard which will help curb tax evasion and tax avoidance between the two countries and will also enable mutual assistance in collection of taxes, a finance ministry statement said.
The protocol entered into force in India on September 7, 2017, and has been notified in the official gazette on November 2, 2017, it added.
The convention between the two countries came into force in December 1986 and was amended through a first protocol in 1997 and a second protocol in 2000.
Subsequently, India proposed to further amend the convention through a third protocol to update the exchange of information article as per the international standard and insert an article on assistance in the collection of taxes.
Accordingly, negotiations were held with New Zealand and an agreement was reached on third protocol.
