What is CRS & FACTA
All New Zealand banks and financial institutions are now required to collect information about customers’ foreign tax residency and pass that and other personal and account information onto Inland Revenue.
Called the Common Reporting Standard (CRS), it has been initiated by the Organisation for Economic Co-Operation and Development (OECD) under the Automatic Exchange of Information (AEOI) regime. The obligations to provide information also extend to the Foreign Account Tax Compliance Act (FATCA) as well as the CRS.
Under FATCA, New Zealand banks and financial institutions are currently required to identify and report annually on any accounts held by US Persons or foreign entities that have US Persons as beneficial owners.
The requirement to capture this information impacts our clients whom we deposit funds on behalf of into an interest-bearing deposit account through the Client Fund Service (CFS) product.
We will guide you through the process should the need arise and if you would like to read more, click here for detailed FAQ's from the BNZ which are very informative and cover:
Why has it come about?
Who does it affect?
What does it cover?
What happens after Reporting?
Tax returns and advice
Or click here for the Ministry of Justice website providing very helpful information.Let's chat