ARTICLE 28 — U.S. Income Tax Treaty

Termination

This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention at any time after 5 years from the date on which the Convention enters into force, provided that at least 6 months prior notice of termination has been given through diplomatic channels. In such event, the Convention shall cease to have effect:

(a) in the United States:

(i) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January next following the expiration of the 6-month period;

(ii) in respect of, other taxes, for taxable periods beginning on or after the first day of January next following the expiration of the 6-month period. (b) in New Zealand.

(i) in respect of withholding tax on income that is derived by a nonresident on or after the first day of April next following the expiration of the 6-month period;

(ii) in respect of other taxes, for any income year beginning on or after the first day of April next following the expiration of the 6-month period.

IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed the present Convention.

DONE at Wellington in duplicate, this 23rd day of July 1982.

FOR THE UNITED STATES OF AMERICA: FOR NEW ZEALAND: (s) Charles B. Salmon, Jr. (s)Warren E. Cooper

PROTOCOL

To the Convention between the United States of America and New Zealand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

At the signing of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, concluded today between the United States of America and New Zealand, the undersigned have agreed that the following provisions shall form an integral part of that Convention.

With reference to Articles 10, 11 and 12 If in any future double taxation convention with any other country, being a member of the Organization for Economic Cooperation and Development, New Zealand should limit its taxation at source on any dividends, interest or royalties to a rate lower than the one provided for in any of such articles, New Zealand shall without undue delay enter into negotiations with the United States to review the appropriate article with a view to providing the same treatment on a reciprocal basis.
With reference to Articles 7, 12 and 21 So long as New Zealand continues to tax the income of film renters according to section 224 of the Income Tax Act of 1976 (including any subsequent enactment which does not affect the general principle thereof) and to exempt from tax in accordance with that section certain payments received from such film renters by persons not resident in New Zealand for the purposes of New Zealand tax, the provisions of Articles 7, 12 and 21 of the Convention shall not affect the taxation by New Zealand of such income or the exemption by New Zealand of such payments

DONE at Wellington in duplicate, this 23rd day of July 1982.

FOR THE UNITED STATES OF AMERICA: FOR NEW ZEALAND:

(s) Charles B. Salmon, Jr. (s)Warren E. Cooper