You may need to provide information if you hold or control an account with a financial institution.
Why information is needed
New Zealand has committed to using the Common Reporting Standard (CRS) to automatically exchange financial account information about foreign tax residents with certain foreign jurisdictions.
Reporting New Zealand financial institutions (Reporting NZFIs) must carry out due diligence on their financial accounts to identify which of their financial accounts are held and/or, in certain circumstances, controlled by relevant foreign tax residents.
If you hold or control an account with a Reporting NZFI, they may ask you to provide (self-certify) your country or countries of tax residence and provide supporting forms, documentation, and other information.
In certain circumstances, the Reporting NZFI will ask for information about the account holder’s controlling persons as well.
Who is an account holder?
Generally, someone is an account holder if they are listed or identified as holding the account (including both persons for joint accounts). Account holders can be entities, not just individuals.
However, if someone (not a financial institution) holds the account on behalf of another person, then the other person is the account holder. For example, if an agent, custodian, nominee, signatory, or investment advisor holds an account for their client, then the client is the account holder.
Trusts and estates
If a trust or an estate is listed as the holder or owner of a financial account, the trust or estate is the account holder rather than its owners or beneficiaries.
Partnerships
If a partnership is listed as the holder or owner of a financial account, the partnership is the account holder rather than the partners of the partnership.
What you may need to do
Account holders may need to provide certain information so the Reporting NZFI can meet their due diligence and reporting obligations.
Individuals
If you hold an account with a Reporting NZFI, they may ask you to provide (self-certify) your country or countries of tax residence.
If so, you need to provide:
- your name
- address
- date of birth
- tax identification number (TIN) or an equivalent
- jurisdiction(s) of tax residence.
You may be asked to provide supporting forms, documentation, and other information.
In certain circumstances, the Reporting NZFI will ask for information about the account holder’s controlling persons as well.
Companies, trusts, partnerships and other entities
If you hold an account on behalf of such an entity with a Reporting NZFI, they may ask you for information about:
- the entity’s tax residence
- the nature of the entity’s business
- how the entity derives its income
- how the entity is managed
- the nature of the entity’s assets
- in some circumstances, the tax residence of individuals who control the entity.
The Reporting NZFI may also ask for supporting documentation.
Account holders or controlling persons need to provide:
- their name
- address
- date of birth
- tax identification number (TIN) or an equivalent
- jurisdiction(s) of tax residence.
The TIN for the entity will also need to be provided.
Tax identification number (TIN)
A person’s TIN is the number used to identify them to the tax authority in the foreign jurisdiction.
Your TIN will be the equivalent of your New Zealand IRD number in that foreign jurisdiction. If you do not have a TIN (or an equivalent), you will be asked to provide a reason.
You will not need to provide a TIN if you are tax resident in a country that does not:
- issue TINs or an equivalent
- require the collection of the TINs they issue.
Find out more about TINs on the OECD website.
Tax identification numbers (oecd.org)
Responding to requests for information
If a financial institution asks for information, it’s important you:
- provide accurate information when you’re asked
- update it within a reasonable time if there is a change.
This includes taking reasonable steps to get and provide information about any persons that you hold an account for.
If you do not respond
If you do not respond to these requests for information or do not respond correctly and completely, the financial institution:
- must not open a new account for you
- may freeze and/or close your account
- may have to treat you as if you are a tax resident in a jurisdiction outside New Zealand, even if you are not.
If you do not provide the required information, we may ask your financial institution for your details so we can consider whether to charge a penalty.
FATCA and information requests
The obligation to provide information for CRS also extends to FATCA. Your financial institution will ask you to provide similar information for the purposes of FATCA.
Find out more about FATCA.
Foreign Account Tax Compliance Act (FATCA)
Establishing tax residency
If you have questions about your tax residence status, you should either contact us or the tax authority in the relevant country or seek advice from a tax agent or advisor.
For CRS purposes there are special rules for determining the tax residency of certain types of entities, such as partnerships, limited liability partnerships, or similar legal arrangements that do not have a tax residence. These entities are treated as resident in the jurisdiction where their place of effective management is situated.
Find out more about establishing tax residency.
Tax residency status for individuals
Tax residency status for companies
For more information about the tax residency rules that apply to CRS-committed jurisdictions, go to the OECD Automatic Exchange Portal.
Dual tax residents
If you're a dual resident, you must declare all your jurisdictions of tax residency. You cannot rely on the tiebreaker rules in Double tax agreements (DTAs).
Self-certification
You will be asked to provide a self-certification (statement) confirming where you are tax resident. To be valid, it needs to be complete, signed or otherwise positively affirmed by you.
More information
Find more information in our Guidance on the CRS for AEOI – IR1048:
- Account holders and controlling persons - section 1.7 to 1.9
- Information to be reported - section 6
- Penalties - section 9.