Tax Watch: 10 June 2026

NZ–UK double tax agreement (2026)

New Zealand and the United Kingdom signed a new DTA on 1 June 2026, replacing the existing 1983 agreement. It aims to improve certainty for taxpayers, and support cross-border trade and investment. The new agreement also includes modern OECD anti-BEPS and anti abuse provisions to prevent treaty shopping and profit shifting. The DTA is not yet in force and will apply once both countries complete their domestic ratification processes.

Inland Revenue kilometre rates 2025–26

The new rates increase Tier 1 amounts across most vehicle types to reflect higher running costs, with more limited movement in Tier 2 rates.

This applies from 4 June 2026 and will directly impact deductible motor vehicle expenditure calculations and employer reimbursement policies under section DE 12 of the Income Tax Act 2007.