A protocol to amend the New Zealand-United states tax treaty was signed on 1 December 2008. The main feature of the protocol is the lowering of withholding tax rates on dividends, interest and royalties.
The rate of withholding tax on dividends will reduce from 15% to 5% if the shareholder directly owns at least 10% of the voting power of the company paying the dividend. If the shareholder owns 80% of the voting power of the company, and meets certain other requirem…