New Zealand has adopted an international standard which involves the collection and sharing of financial account holder tax information. As a result, Kiwibank (as a New Zealand financial institution) is required to identify accounts held by customers who are foreign tax residents or entities connected to foreign tax residents and report information on these accounts to Inland Revenue (IR).
Below are some common questions you may have. If you’d like to know more about this new legislation and how it may affect you visit ird.govt.nz.
Under the AEOI standard*, we’re required to determine in which overseas countries, if any, our customers are ‘tax residents’. If you’re a tax resident outside of New Zealand, we may need to give IR this information, along with other information about your accounts with us. IR may share this information with overseas tax authorities.
From 1 July 2017, we’ll be required to gather this information when a customer joins Kiwibank, or when an existing customer opens a new account. We’ll be unable to open an account until all customers associated with the account have provided the information we are required to collect. Generally customers need to provide their own information to Kiwibank however there are some exceptions which are explained in the ‘Who can provide this information for me?’ section below.
You’ll need to let us know if you’re a tax resident in any country other than New Zealand, and if you are, we’ll need to know your tax identification number (TIN) or functional equivalent.
Even if you’re not a tax resident anywhere else, you’ll need to let us know this.
All customers opening a new account will need to provide information about their overseas tax status. You’ll be prompted when you open an account from 1 July 2017.
Kiwibank’s obligations cover all its customers, including trusts, partnerships and limited liability companies.
If you’re opening a new account with Kiwibank on behalf of a legal entity, e.g. a company, or a legal arrangement, such as a trust or partnership, we’ll ask you for information about:
The term ‘TIN’ means ‘Tax Identification Number’. A TIN is a unique combination of letters and/or numbers assigned by a country to an individual or an entity and used to identify the individual or entity for the purposes of administering the tax laws of that country.
In New Zealand, this is referred to as your IRD number.
Further details of acceptable TINs can be found on the OECD website.
Some countries don’t issue a TIN. However, these countries often utilise some other high integrity number with an equivalent level of identification (a ‘functional equivalent’). Examples of that type of number include, for individuals, a social security/insurance number, citizen/personal identification/service code/number, and resident registration number.
There may be situations where you’re a tax resident in another country but don’t have a TIN. Some countries don’t issue their residents with a tax number, while some countries don’t require their residents to disclose their tax identification number. You can check the OECD website for more information.
What’s defined as a tax resident varies from country to country. We don’t provide personalised advice on this.
Each country/jurisdiction has its own rules for defining tax residence. Many jurisdictions have provided information on their individual and entity tax residency rules on the OECD website.
Generally, a person or entity will be resident for tax purposes in a jurisdiction if, under the local laws (including tax conventions), it pays or should be paying tax there, by reason of their domicile, residence, place of management or incorporation, or any other criterion of a similar nature, and not only from sources in that jurisdiction.
An entity such as a partnership, limited liability partnership or similar legal arrangement that has no residence for tax purposes shall be treated as resident in the jurisdiction in which its place of effective management is situated.
For additional information on tax residence, please talk to your tax adviser or refer to the OECD website.
If you’re an existing customer you’ll be able to provide your individual self-certification directly in internet banking. Simply log into internet banking, select the ‘Settings’ icon at the top of the page then select ‘Overseas tax details’.
If you don’t have internet banking or you’re completing a self-certification for an entity, you can fill in the Self-Certification for an Individual/Controlling Person (PDF 94.5 KB) and/or the Self-Certification for an Entity Account Holder (PDF 108.3 KB) and send by email to email@example.com or post to the mailing address on the form(s).
You can also give us a call or visit your nearest Kiwibank to provide this information. Make sure you have your tax identification number/s handy.
There’s no limit to how often you can update your information, and tax residency can change over time. Under New Zealand legislation you’re required to notify us of any change in any information which affects your overseas tax residency status. You can update your overseas tax details at any time either through internet banking, by calling us or visiting your nearest Kiwibank. It’s important to keep your overseas tax details up to date.
Customers must provide their own overseas tax information to Kiwibank. There are a couple of exceptions to this:
Since we’re required to gather this information from new customers when they join the bank, we’ll be unable to open any accounts for new customers until we have gathered this information.
For existing customers, we’ll be unable to open any new accounts until all customers associated with the account provide the required information. If you're an existing customer we may be required to be in touch with you to collect this information. For certain entities all controlling persons must also provide this information before an account can be opened.
IR is able to penalise anyone who provides false or misleading information, fails to provide information, or fails to provide an update if there is a material change to the information the person has previously provided to us. This includes civil penalties of $1,000. Criminal penalties can also apply for knowledge offences.
These penalties will help to ensure the AEOI regime is effective. Other countries that are implementing the AEOI have similar provisions in place.