Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


US tax law to take effect in New Zealand


US tax law to take effect in New Zealand

New Zealand banks are moving to implement their obligations under the United States Foreign Account Tax Compliance Act (FATCA).

The US law aims to reduce tax evasion by US persons using financial accounts outside the United States of America. It does so by requiring participating financial institutions around the world, including New Zealand banks, to provide relevant information about customers who are US persons.

“FATCA does not introduce any new tax obligations for US citizens and residents living in New Zealand. They will still have to file an annual US tax return,” said New Zealand Bankers’ Association deputy chief executive Karen Scott-Howman.

FATCA will be phased in from 1 July 2014. The information reporting requirements will apply to relatively few people living in New Zealand. They include US citizens, US permanent residents and green card holders, and people born outside the United States who have a US parent.

“Anyone unsure about their US tax status should seek independent tax or legal advice,” Scott-Howman said.

If financial institutions do not comply with FATCA they may be penalised by a 30% withholding tax on principle and income from investments in the United States. US capital markets provide much of the funding most banks need to lend to New Zealand households and businesses. If those funding sources were no longer available due to non-compliance there would be a significant impact on the New Zealand economy.

“Complying with FATCA allows our banks to continue to provide services to US citizens and residents who have New Zealand bank accounts,” said Scott-Howman.

The New Zealand Bankers’ Association has produced a FATCA information sheet for bank customers which is available at:
http://www.nzba.org.nz/assets/Uploads/Documents/You-and-your-US-tax-obligations.pdf


ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news