The Inland Revenue Department has published information on the US Foreign Account Tax Compliance Act, and its application in New Zealand.
The Foreign Account Tax Compliance Act (FATCA) is United States (US) legislation aimed at reducing tax evasion by US citizens, US tax residents, and US entities in countries outside the US.
Under FATCA, US citizens and US tax residents with foreign financial assets that exceed specified thresholds must report those assets to the United States Internal Revenue Service (IRS), whether they live in the US or not.
The IRD has dedicated a page on its website to FATCA, setting out:
- who it applies to;
- whether it is advisable to register with the IRS;
- how it could affect your business;
- IRD’s role; and
- key dates.
The IRD has also published the following guidance notes:
- Registration Guidance Notes (as at 30 July 2014)
- Due Diligence Guidance Notes (as at 30 July 2014)
- U.S. Reportable Accounts Guidance Notes (as at 30 July 2014)
- Guidance Notes: Application of FATCA to Collective Investment Vehicles (as at 30 July 2014)
- Glossary of terms
Click here to visit the IRD’s FATCA page.