Reporting New Zealand financial institutions (Reporting NZFIs) must carry out due diligence on all their financial accounts. They may need to collect specific information and provide it to us.
Due diligence
Reporting NZFIs must:
- review all financial accounts and get self-certifications to identify accounts held and/or controlled by relevant foreign tax residents
- collect required identity and financial account information.
Identifying relevant foreign tax residents
New Zealand uses the wider approach to CRS due diligence. This means you must look for all relevant foreign tax residents, not only people who are tax residents of reportable jurisdictions.
Passive non-financial entities
You need to identify accounts held by a passive non-financial entity (NFE) and controlled by relevant foreign tax residents.
For example, if a financial institution has an account held by a managed investment entity from a jurisdiction that is not a participating jurisdiction, you must treat that entity as a passive NFE and identify the entity's controlling persons.
Applying the due diligence rules
The due diligence steps you must take depend on:
- when the account was opened – different rules apply to pre-existing accounts and new accounts
- who holds the account – different rules apply to individuals and entities
- for pre-existing accounts held by individuals, the value of the account - higher-value accounts require more detailed checks than lower-value accounts.
Pre-existing and new accounts from 1 April 2026
Accounts that became financial accounts only because of the CRS amendments (such as specified electronic money products, central bank digital currencies and relevant crypto-assets) are:
- pre-existing if held on 31 March 2026
- new if opened on or after 1 April 2026.
Collecting required information
You must collect and report the following information.
- Identity information - name, address, jurisdiction(s) of residence, tax identification number (TIN) or equivalent, date of birth of the relevant foreign tax resident.
- Financial account information - account balance, income and payment information.
For new accounts, you must get identity information in a self-certification.
Self-certification
You must ask for a self-certification to work out an account holder or controlling person’s tax residency. This is always needed when opening a new account. You may also need to ask again where there is a change in circumstances.
When you receive a self-certification, you must check that it meets the reasonableness test. This means comparing it with the information you collected when the account was opened and any other information you already hold. As part of this check, consider whether the tax identification number (TIN) provided appears reasonable for the stated jurisdiction of tax residence.
The self-certification must be complete. You cannot rely on it if you know, or have reason to think, that it is wrong, unreliable, or no longer correct because there has been a change in circumstances.
If the self-certification does not meet the reasonableness test, you must either get a new valid self-certification or get a reasonable explanation and documents confirming the original self-certification is still valid. You must keep a copy or note of the explanation and any documents.
Information reporting
Report the required identifying and financial account information to us by 30 June following the end of the tax year – 1 April to 31 March.
Account information is reported if either:
- the relevant foreign tax resident is from a reportable jurisdiction (known as a reportable person), or
- you chose the wider approach to reporting.
You must also report all undocumented accounts. Check the definition of an undocumented account to make sure you apply it correctly.
More detailed information from 1 April 2026
From 1 April 2026, the CRS requires more detailed reporting for some accounts. This includes extra information about account holders, controlling persons and their financial accounts.
You may also need to report:
- the role of each reportable person – this applies to equity interests in investment entity legal arrangements, and to controlling persons of passive non-financial entity account holders
- whether a valid self-certification has been provided
- whether the account is a joint account, and the number of joint account holders
- the type of account
- whether the account is pre-existing or new.
Excluded accounts
The CRS excludes some accounts from CRS due diligence and reporting.
Excluded accounts include:
- retirement and pension accounts
- non-retirement tax-favoured accounts
- term life insurance contracts
- estate accounts
- escrow accounts
- depository accounts due to non-returned overpayments.
New exclusion from 1 April 2026
Some low-value electronic money products are also excluded from 1 April 2026. This applies where the product’s rolling average end-of-day account balance or value over any 90-day period is no more than $10,000. Reporting NZFIs can use NZD $10,000 as the threshold.
Record keeping
You must keep records of the steps you have taken to meet your CRS obligations and the evidence you have relied on. This includes keeping a record when you could not get a required self-certification.
Account holders and controlling persons
Individuals and entities holding, and in certain circumstances controlling, financial accounts must provide documentation and other information to help you carry out your CRS due diligence and reporting obligations.
Account holders and controlling persons
More information
Find more information in our Guidance on the CRS for AEOI – IR1048B.
- Due diligence – section 5
- Information to be reported – section 6