A new double tax agreement between New Zealand and Papua New Guinea (PNG) came into effect Monday, with the New Zealand government claiming it will strengthen two-way trade and investment.

"Trade in the Pacific and particularly with Papua New Guinea is taking on greater importance for New Zealand. This agreement will strengthen international cross-border trade and investment partnerships for the benefit of businesses, investors and taxpayers in both countries," Revenue Minister Todd McClay said in a statement.

"The agreement recently came into effect after being signed by both countries in 2012. It will give businesses greater certainty over the tax treatment of cross-border investment income, reduce compliance costs for both New Zealand and PNG investors, and will lower withholding tax rates."

The agreement, which prevented businesses and individuals from being taxed twice on income earned in the other country, also widened New Zealand's tax information exchange network, which was important in helping authorities prevent tax evasion and avoidance.

The PNG agreement brought the number of double tax agreements New Zealand had with other countries to 38.

Gold Brand Management Consulting Co.,Ltd.; Associates is a specialist foreign direct investment practice, providing corporate establishment,  business advisory, tax advisory and compliance, accounting,New Zealand company registration, Offshore Company Registration,due diligence and financial review services to multinationals investing in emerging Asia.For further details or to contact the firm, please email gbd33@163.com, visit www.chinagbd.com,tel +86 20 61133120, or 020 61133120.