This page explains how reporting New Zealand financial institutions (NZFIs) can register with us for the Common Reporting Standard (CRS), and the reporting options available for annual disclosures.
The following registration requirements also apply to trustee documented trusts that have reportable accounts. This is a high level summary with some exceptions.
If your tax agent has your official written authority to act on your behalf, they'll be able to register and report for the CRS for you.
Service providers and trustees will be able to report on behalf of an NZFI for CRS purposes. They will not be able to register unless they are a tax agent.
The NZFI will be able to delegate access to service providers and trustees in myIR. Alternatively, the service provider or trustee will be able to request access from the NZFI.
NZFIs with CRS obligations are able to register in myIR.
Our Common Reporting Standard (CRS) - registration and reporting user guide assists you with the registration and reporting process.
Before you register for the CRS, you'll need to have an IRD number.
If you don't meet the criteria to apply for an IRD number, email us at email@example.com to discuss your situation.
We'll ask you some questions to determine if the entity you're registering is an NZFI that needs to report to us for CRS purposes.
Yes: Go to question 2.
No: You must be a financial institution to register for a CRS account.
A financial institution is a type of entity.
An “Entity” covers legal persons and legal arrangements, eg, companies, corporations, partnerships, incorporated bodies, trusts and foundations. An individual cannot be an “Entity”.
CRS section VIII(E)(3).
A “Financial Institution” is an Entity that comes within any of the following four categories:
CRS Section VIII(A) of the CRS and CRS Com pp. 159-165
Yes (resident in New Zealand or branch in New Zealand): Go to question 3.
No: You must be a financial institution that is resident in New Zealand (or has branch operations here) to register for a CRS account.
CRS Section VIII(A)(2) and CRS Com. pp. 158-159.
Yes: You have determined that you are a category of financial institution that is not required to report (or be reported on) for CRS purposes. You do not need to register for a CRS account.
No: Registration complete. Please note that trustee documented trusts with reportable accounts are required to register with IRD.
Non-Reporting Financial Institutions include:
NZFIs with CRS obligations (including service providers and trustees that report on their behalf) are able to report the relevant CRS information to us in myIR.
You must complete your reporting by 30 June of the relevant tax year. For example, if your first CRS period ended 31 March 2018 you must report by 30 June 2018.
Instructions on how to submit a CRS disclosure are in the Common Reporting Standard (CRS) - registration and reporting user guide.
We can't provide extensions to the reporting period as this obligation is set out in the Tax Administration Act 1994. It's also important that New Zealand meets its international obligations.
You are able to choose from three different reporting options:
Account holders and controlling persons aren't required to report to us. Their financial institution will report the prescribed information about their accounts, if such persons are identified as being relevant foreign tax residents.
If New Zealand has an automatic exchange of information (AEOI) exchange agreement with your jurisdiction of tax residence, we'll send this information to the tax authority in that jurisdiction by 30 September of the relevant tax year.
New Zealand will also be receiving information from other jurisdictions about New Zealand tax residents that are investing overseas. This will help us verify that these people have paid the correct tax on these offshore investments.
We'll handle all information reported under the CRS in the strictest confidence as will the foreign tax authorities. Domestic laws, administrative practices, and binding international treaties protect your information.
Penalties can apply to financial institutions that don't comply with CRS due diligence and reporting obligations, including recordkeeping. This includes escalating thresholds of civil penalties and criminal penalties for knowledge-based offences.
Penalties may apply if you:
This includes civil penalties of $1,000 that we could apply as well as criminal penalties that can apply for knowledge-based offences.
You can find more information in Section 9 Penalties Regime, Inland Revenue Guidance on the CRS.