This icon () tells you which link takes you to the new site.
This page is for New Zealand financial institutions (NZFIs) affected by the Common Reporting Standard (CRS).
From 1 July 2017 Reporting New Zealand financial institutions (Reporting NZFIs) will need to:
Similarly, overseas financial institutions must identify their New Zealand tax resident account holders and certain controlling persons and report accounts to us through their local tax authorities if New Zealand has an AEOI exchange relationship with that country or jurisdiction.
Go to the New Zealand CRS Applied Standard
PDF | 450kb | 22 pages
An Inland Revenue factsheet is available to support AEOI related customer conversations.
Reporting NZFIs will have CRS due diligence and reporting obligations, if they are an entity, ie not an individual and if all of the following are satisfied:
An "entity" will be a financial institution based on the activities that it carries out or how it is managed. This covers both:
This means that legal persons and legal arrangements can, depending on the circumstances, be financial institutions. However, the definition of “entity” does not cover individuals.
There are two types of entities for CRS purposes - financial institutions, and non-financial entities (NFEs).
There are four types of financial institutions covered by the CRS:
For more information on the types of financial institutions, go to section 3.1 of the Inland Revenue Guidance on the CRS.
These types of financial institutions are broadly similar to FATCA. Apart from more obvious entities such as banks, this can also include non-bank deposit takers, collective investment entities, mutual funds, private equity funds, hedge funds, investment managers and advisors, and certain brokers and trusts (including some managed family trusts). You can find more information in the Inland Revenue guidance Section 11 "Application of CRS to particular types of entities and structures".
If an entity is not a financial institution it will by default be an NFE. There are two categories of NFEs - active NFEs and passive NFEs. The meaning of active and passive NFE is summarised in section 1.9 of the Inland Revenue Guidance on the CRS.
If an NFE is not active, it will by default be a passive NFE. NFEs will not have due diligence and reporting obligations. However, if they hold accounts with Reporting NZFIs they will have obligations to assist those institutions with their due diligence and reporting obligations. For passive NFEs, this would include providing information about their controlling persons.
A financial institution will be an NZFI if it is a:
The circumstances when a financial institution will be a NZFI are summarised in section 3.2 of the Inland Revenue Guidance on the CRS.
An NZFI will be a Reporting New Zealand financial institution (Reporting NZFI) unless it is a Non-Reporting NZFI. The meaning of Non-Reporting financial institution is set out in Section VIII (B)(1) of the CRS. For more information about NZFIs go to section 3.3 to 3.6 of the Inland Revenue Guidance on the CRS.
The Commissioner of Inland Revenue can determine that certain institutions that satisfy set criteria are Non-Reporting financial institutions.
If you have questions or would like to join the AEOI industry implementation update please email us at email@example.com