Tax residency
Automatic Exchange of Information (AEOI)
New Zealand is one of many countries that has entered into international agreements and has passed amended legislation to support the automatic exchange of account information between the New Zealand Inland Revenue Department (IRD) and the tax authorities of other participating countries. The aim of these exchanges is to reduce global tax evasion.
There are two reporting types under AEOI that may affect you, the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA).
Common Reporting Standard (CRS)
The CRS was developed by the OECD to combat global tax evasion. Through changes being made to the Tax Administration Act 1994, the CRS will come into effect in New Zealand on the 1st of July 2017.
The CRS requires certain New Zealand Financial Institutions to collect information about customers and their countries/jurisdictions of tax residence. This information is referred to as a customer’s self-certification.
If a customer is a tax resident of a country other than New Zealand, ASB may be legally obliged to pass on information about them and their financial accounts to the IRD. The IRD may then pass on this information to the relevant overseas tax authorities.
Further information:
To find out more visit the OECD website or the IRD website.
Foreign Account Tax Compliance Act (FATCA)
FATCA is United States (US) legislation that aims to reduce tax evasion by US citizens, US tax residents and certain entities that have bank accounts outside of the US. This is because they are required to report their worldwide income to the United States’ Internal Revenue Service (IRS) whether they live in the US or not.
ASB has a regulatory requirement to comply with FATCA. It is enabled in New Zealand through the Double Tax Agreements (United States of America - FATCA) Order 2014, and two agreements entered into by the governments of New Zealand and the United States of America, being the Intergovernmental Agreement and Memorandum of Understanding.
FATCA requires certain New Zealand Financial Institutions to collect information about their customers’ countries/jurisdictions of citizenship and tax residence. If a customer is deemed a US person, US entity or an entity controlled by US persons ASB may be legally obliged to pass on information about them and their financial accounts to the IRD. The IRD may then pass on this information to the IRS.
Further information:
To find out more visit the IRD website.
How CRS and FATCA may affect you?
All new to ASB customers will be required to provide their self-certification before opening an account. We also require the self-certification of key individuals related to certain entities such as beneficial owners and trustees of trusts.
Existing customers may also be contacted by ASB to confirm their self-certification and/or asked to provide additional documentation to support their self-certification.
When we request this information it is important for customers to respond, whether or not they have foreign tax obligations, as we may be required to share this information with the IRD about customers who have not provided us with the requested information. If a customer does not respond they may be imposed with penalties by the IRD.
For more information call our Customer Verification Services team on 0800 111 373 or +64 9 337 4564 if calling from overseas.
Please note that as a Financial Institution, we are not allowed to give tax advice.
If you are unsure about your tax residency obligations we recommend you visit the IRD website or seek professional advice from an independent tax advisor.
You can also find more information in our customer tax residency brochure.
You can find a simplified Chinese version of the brochure here.
Frequently Asked Questions
1. Why are we collecting customer tax information?
The New Zealand Government has committed to a new global standard on the automatic exchange of financial account information. This requires financial institutions around the world to collect specific information about their customers, including their tax residency information and share that information with their local tax authority. Tax authorities will exchange information reported annually from financial institutions to assist in making sure everyone pays the right amount of tax.
2. What is a tax resident?
Different countries have different rules to determine tax residence. Generally, you'll be tax resident in the country you live in. However, depending on your situation, you may be a tax resident in more than one country. If you are unsure about your tax residence, please contact a tax advisor. Alternatively you can check the OECD website, which includes tax residence information for a number of countries or the Inland Revenue website for further information on NZ tax residence. Please note that as a Financial Institution, we are not allowed to give tax advice.
3. How do I supply ASB with the required information?
When opening an account you will be asked to provide specific information, including your tax residency details. For existing customers this information can be provided through Fastnet Classic, or by visiting a branch, contacting your Relationship Manager or calling our Customer Verification Services Team on 0800111373 or +64 9 337 4564.
4. What is a Taxpayer Identification Number (TIN)?
If you are a tax resident of another country, you will be asked for your Taxpayer Identification Number (TIN) issued to you in that country, if you have one. TIN is an international term, which may have a different name in some countries.
We have listed below some examples of countries and the name of their TIN or equivalent. For a full list refer to the OECD website.
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Country
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TIN or equivalent individual
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TIN entity (non-individual) e.g. Company, Partnership or Trust
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Tax Authority
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|---|---|---|---|
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Australia
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Tax File Number (TFN)
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Australian Business number (ABN)
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China
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ID number
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Credibility Code or TIN
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United Kingdom
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National Insurance Number (NINO) or Unique Taxpayer Reference (UTR)
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National Insurance Number (NINO) or Unique Taxpayer Reference (UTR)
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United States
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Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
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Individual Taxpayer Identification Number (ITIN) or Employer Identification Number (EIN)
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India
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Permanent Account Number (PAN)
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Permanent Account Number (PAN)
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South Korea
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Resident Registration Number
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Business Registration Number
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South Africa
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Taxpayer reference number
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Taxpayer reference number
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Germany
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Personal Identification number Taxpayer Identification Number (TIN) |
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Indonesia
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Tax ID Number (Nomor Pokok Wajib Pajak)
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Canada
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Social Insurance Number (SIN)
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Business Number
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Philippines
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Taxpayer Identification Number
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Taxpayer Identification Number
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5. Where do I find my TIN?
If you are unsure of where to find your TIN, you will need to contact the tax authority for each country of tax residence. Below are some examples of countries and their tax authority websites. For a full list refer to the OECD website.
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Country
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Website
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|---|---|
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Australia
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China
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United Kingdom
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United States
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India
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South Korea
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South Africa
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Germany
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Indonesia
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Canada
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Philippines
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6. What if I have an existing account?
Next time you open a new account you may be asked for additional information, including your tax residency information, if we do not already have it.
7. What if I am only a tax resident in New Zealand?
You will still be required to confirm your tax residency information. Provision of your New Zealand Taxpayer identification Number (IRD number) is optional.
8. I am an overseas student or only in New Zealand on a temporary visa, what do I need to do?
If you open an account with ASB, you need to provide the required information, including your tax residency information.
9. Do I need to provide this information for my child/minor?
The child (or their authorised representative) must provide the required information, including the child's tax residency information. Being a minor does not exempt them from answering these questions.
10. What is an entity?
An entity is a non-individual, e.g. Company, Partnership, Trust or Incorporated Society.
11. What information do I need to provide?
We will ask you to complete a self-certification to provide us with some additional information.
For individuals we will ask for the following:
- Name
- Date of birth
- Residential address
- Country(ies) of tax residency (including New Zealand)
- Taxpayer identification number(s) (TIN) (not mandatory for New Zealand tax residency)
For entities (non-individuals), we will ask for the following:
- Name of the entity
- Country of incorporation/organisation
- Physical address
- Country(ies) of tax residency (including New Zealand)
- Taxpayer identification number(s) (TIN) (not mandatory for New Zealand tax residency)
- Whether the entity is a financial institution http://www.ird.govt.nz/international/exchange/crs/crs-glossary/
- How the entity generates its income
- Information on Controlling Persons, including self certification
12. Who will ASB report this information to?
The information collected by ASB will be reported to the New Zealand Inland Revenue.
The Inland Revenue may share this with relevant tax authorities in order to help reduce global tax evasion.
13. When do I provide this information?
If you are a new customer to ASB, you will need to declare your tax residency before we open your account. Existing customers may also be requested to update their tax residency details.
14. What if I am not sure what to declare?
If you are unsure about your tax residency, please contact a professional tax advisor, the Inland Revenue website or check the OECD website for more information on how to determine your tax residency. We cannot give tax advice to customers.
