COVID-19 has caused issues with the tax residence rules. We have information and examples available that relate to individuals and companies. This page explains situations where COVID-19 may impact the tax residence rules with examples included at the bottom of the page.
Double tax agreements (DTAs)
Double tax agreements (DTAs) may have an effect on your tax if you're stranded in New Zealand because of COVID-19.
Breach of Advance Pricing Agreement (APAs) conditions
We are aware that customers with current APAs may be impacted during the COVID-19 crisis. At this stage, we do not know how significant the disruption will be or how long it will last and there are considerable variations between sectors and types of businesses. We recognise these rulings will need to be reconsidered in light of this global upheaval. We would like to reassure customers that they do not need to take any specific action now to ensure that their circumstances are appropriately reviewed in due course but note the following points.
- Our input or permission is not required where a customer makes a business decision that results in an APA breach.
- If an APA breach occurs, please advise us in the relevant year’s Annual Compliance Report (ACR). We recognise that due to the significant uncertainty faced by businesses currently, communication at any earlier point, particularly before year-end or before a tax position is taken, may be problematic.
- When reviewing an APA breach disclosed in the ACR, we will consider the exceptional circumstances faced by the customer and we anticipate that there will be some circumstances where the arm’s-length outcome during the COVID-19 pandemic may differ from that agreed in the APA.
COVID-19 Practice issues
Transfer pricing issues arising from COVID-19 are wide-ranging and vary considerably between businesses and across comments.
Due date for Common Reporting Standard (CRS) and FATCA
Please note that the due date for reporting New Zealand financial institutions (NZFIs) to submit CRS and FATCA information for the period ended 31 March 2021 is 30 June 2021.