TREATIES AND OTHER INTERNATIONAL ACTS SERIES 14-703

________________________________________________________________________

TAXATION

Foreign Account Tax Compliance 

Agreement Between the 

UNITED STATES OF AMERICA

and NEW ZEALAND

Signed at Wellington June 12, 2014 

with

Annexes
 NOTE BY THE DEPARTMENT OF STATE

 Pursuant to Public Law 89—497, approved July 8, 1966

(80 Stat. 271; 1 U.S.C. 113)—

“. . .the Treaties and Other International Acts Series issued

under the authority of the Secretary of State shall be competent

evidence . . . of the treaties, international agreements other than

treaties, and proclamations by the President of such treaties and

international agreements other than treaties, as the case may be, 

therein contained, in all the courts of law and equity and of maritime

jurisdiction, and in all the tribunals and public offices of the

United States, and of the several States, without any further proof

or authentication thereof.”
 NEW ZEALAND 

 

 Taxation: Foreign Account Tax Compliance 

 Agreement signed at Wellington June 12, 2014;

 Entered into force July 3, 2014.

 With annexes.
Agreement 

between 

the Government of the United States of America 

and 

the Government of New Zealand 

to Improve International Tax Compliance 

and to Implement FATCA 

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Whereas, the Government of the United States of America and the Government of New 

Zealand (each, a "Party," and together, the "Parties") have a longstanding and close 

relationship with respect to mutual assistance in tax matters and desire to conclude an 

agreement to improve international tax compliance by further building on that relationship; 

Whereas, Article 25 of the Convention between the United States of America and New 

Zealand for the Avoidance of Double Thxation and the Prevention of Fiscal Evasion with 

Respect to Taxes on Income, together with a related Protocol, done at Wellington on July 23, 

1982, as amended by a Protocol, done at Washington on December 1, 2008 (the 

"Convention") authorizes exchange of information for tax purposes, including on an 

automatic basis; 

Whereas, the United States of America enacted provisions commonly known as the Foreign 

Account Tax Compliance Act ("FATCA"), which introduce a reporting regime for financial 

institutions with respect to certain accounts; 

Whereas, the Government of New Zealand is supportive of the underlying policy goal of 

FATCA to improve tax compliance; 

Whereas, FATCA has raised a number of issues, including that New Zealand financial 

institutions may not be able to comply with certain aspects of FATCA due to domestic legal 

impediments; 

Whereas, the Government of the United States of America collects information regarding 

certain accounts maintained by U.S. financial institutions held by residents of New Zealand 

and is committed to exchanging such information with the Government of New Zealand and 

pursuing equivalent levels of exchange; 

Whereas, the Parties are committed to working together over the longer term towards 

achieving common reporting and due diligence standards for financial institutions; 

Whereas, the Government of the United States of America acknowledges the need to 

coordinate the reporting obligations under FATCA with other U.S. tax reporting obligations 

of New Zealand financial institutions to avoid duplicative reporting; 

Whereas, an intergovernmental approach to FATCA implementation would address legal 

impediments and reduce burdens for New Zealand financial institutions; 

Whereas, the Parties desire to conclude an agreement to improve international tax compliance 

and provide for the implementation of FATCA based on domestic reporting and reciprocal 

automatic exchange pursuant to the Convention and subject to the confidentiality and other 

protections provided for therein, including the provisions limiting the use of the information 

exchanged under the Convention; 

Now, therefore, the Parties have agreed as follows: 

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Article 1 

Definitions 

1. For purposes of this agreement and any annexes thereto ("Agreement"), the following 

terms shall have the meanings set forth below: 

a) The term ''United States" means the United States of America, including the 

States thereof, but does not include the U.S. Territories. Any reference to a 

"State" of the United States includes the District of Columbia. 

b) The term ''U.S. Territory" means American Samoa, the Commonwealth of 

the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or 

the U.S. Virgin Islands. 

c) The term ''IRS" means the U.S. Internal Revenue Service. 

d) The term ''New Zealand" means the territory of New Zealand but does not 

include Tokelau. 

e) The term ''Partner Jurisdiction" means a jurisdiction that has in effect an 

agreement with the United States to facilitate the implementation of FATCA. 

The IRS shall publish a list identifying all Partner Jurisdictions. 

t) The term "Competent Authority" means: 

(1) in the case of the United States, the Secretary of the Treasury or a 

delegate of the Secretary; and 

(2) in the case of New Zealand, the Commissioner of Inland Revenue or 

an authorised representative of the Commissioner. 

g) The term "Financial Institution" means a Custodial Institution, a Depository 

Institution, an Investment Entity, or a Specified Insurance Company. 

h) The term "Custodial Institution" means any Entity that holds, as a 

substantial portion of its business, financial assets for the account of others. 

An entity holds financial assets for the account of others as a substantial 

portion of its business if the entity's gross income attributable to the holding of 

financial assets and related financial services equals or exceeds 20 percent of 

the entity's gross income during the shorter of: (i) the three-year period that 

ends on December 31 (or the final day of a non-calendar year accounting 

period) prior to the year in which the determination is being made; or (ii} the 

period during which the entity has been in existence. 

i) The term ''Depository Institution" means any Entity that accepts deposits in 

the ordinary course of a banking or similar business. 

j) The term ''Investment Entity" means any Entity that conducts as a business 

(or is managed by an entity that conducts as a business) one or more of the 

following activities or operations for or on behalf of a customer: 

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(l) trading in money market instruments (cheques, bills, certificates of 

deposit, derivatives, etc.); foreign exchange; exchange, interest rate 

and index instruments; transferable securities; or commodity futures 

trading; 

(2) individual and collective portfolio management; or 

(3) otherwise investing, administering, or managing funds or money on 

behalf of other persons. 

This subparagraph IG) shall be interpreted in a manner consistent with similar 

language set forth in the definition of "financial institution" in the Financial 

Action Task Force Recommendations. 

k) The term "Specified Insurance Company" means any Entity that is an 

insurance company (or the holding company of an insurance company) that 

issues, or is obligated to make payments with respect to, a Cash Value 

Insurance Contract or an Annuity Contract. 

l) The term ''New Zealand Financial Institution'' means (i) any Financial 

Institution resident in New Zealand, but excluding any branch of such 

Financial Institution that is located outside New Zealand; and (ii) any branch 

of a Financial Institution not resident in New Zealand, if such branch is 

located in New Zealand. 

m) The term ''Partner Jurisdiction Financial Institution" means (i) any 

Financial Institution established in a Partner Jurisdiction, but excluding any 

branch of such Financial Institution that is located outside the Partner 

Jurisdiction; and (ii) any branch of a Financial Institution not established in the 

Partner Jurisdiction, if such branch is located in the Partner Jurisdiction. 

n) The term "Reporting Financial Institution" means a Reporting New Zealand 

Financial Institution or a Reporting U.S. Financial Institution, as the context 

requires. 

o) The term "Reporting New Zealand Financial Institution" means any New 

Zealand Financial Institution that is not a Non-Reporting New Zealand 

Financial Institution. 

p) The term "Reporting U.S. Financial Institution" means (i) any Financial 

Institution that is resident in the United States, but excluding any branch of 

such Financial Institution that is located outside the United States; and (ii) any 

branch of a Financial Institution not resident in the United States, if such 

branch is located in the United States, provided that the Financial Institution or 

branch has control, receipt, or custody of income with respect to which 

information is required to be exchanged under subparagraph (2)(b) of Article 2 

of this Agreement. 

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q) The term ''Non-Reporting New Zealand Financial Institution" means any 

New Zealand Financial Institution, or other Entity resident in New Zealand 

that is described in Annex II as a Non-Reporting New Zealand Financial 

Institution or that otherwise qualifies as a deemed-compliant FFl or an exempt 

beneficial owner under relevant U.S. Treasury Regulations. 

r) The term ''Nonparticipating Financial Institution" means a nonparticipating 

FFI, as that term is defined in relevant U.S. Treasury Regulations, but does not 

include a New Zealand Financial Institution or other Partner Jurisdiction 

Financial Institution other than a Financial Institution treated as a 

Nonparticipating Financial Institution pursuant to subparagraph 2(b) of Article 

5 of this Agreement or the corresponding provision in an agreement between 

the United States and a Partner Jurisdiction. 

s) The term "Financial Account" means an account maintained by a Financial 

Institution, and includes: 

(1) in the case of an Entity that is a Financial Institution solely because it 

is an Investment Entity, any equity or debt interest (other than interests 

that are regularly traded on an established securities market) in the 

Financial Institution; 

(2) in the case of a Financial Institution not described in subparagraph 

l(s)(l) of this Article, any equity or debt interest in the Financial 

Institution (other than interests that are regularly traded on an 

established securities market), if (i) the value of the debt or equity 

interest is determined, directly or indirectly, primarily by reference to 

assets that give rise to U.S. Source Withholdable Payments; and (ii) the 

class of interests was established with a purpose of avoiding reporting 

in accordance with this Agreement; and 

(3) · any Cash Value Insurance Contract and any Annuity Contract issued or 

maintained by a Financial Institution, other than a noninvestmentlinked, nontransferable immediate life annuity that is issued to an 

individual and monetizes a pension or disability benefit provided under 

an account, product, or arrangement that is excluded from the 

definition of Financial Account in Annex II. 

Notwithstanding the foregoing, the term "Financial Account" does not include 

any account, product, or arrangement that is excluded from the definition of 

Financial Account in Annex II. For purposes of this Agreement, interests are 

"regularly traded" if there is a meaningful volume of trading with respect to 

the interests on an ongoing basis, and an "established securities market" means 

an exchange that is officially recognized and supervised by a governmental 

authority in which the market is located and that has a meaningful annual 

value of shares traded on the exchange. For purposes of this subparagraph 

l(s), an interest in a Financial Institution is not "regularly traded" and shall be 

treated as a Financial Account if the holder of the interest (other than a 

Financial Institution acting as an intermediary) is registered on the books of 

such Financial Institution. The preceding sentence will not apply to interests 

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first registered on the books of such Financial Institution prior to July 1, 2014, 

and with respect to interests first registered on the books of such Financial 

Institution on or after July 1, 2014, a Financial Institution is not required to 

apply the preceding sentence prior to January 1, 2016. 

t) The term "Depository Account" includes any commercial, checking, savings, 

time, or thrift account, or an account that is evidenced by a certificate of 

deposit, thrift certificate, investment certificate, certificate of indebtedness, or 

other similar instrument maintained by a Financial Institution in the ordinary 

course of a banking or similar business. A Depository Account also includes 

an amount held by an insurance company pursuant to a guaranteed investment 

contract or similar agreement to pay or credit interest thereon. 

u) The term "Custodial Account" means an account (other than an Insurance 

Contract or Annuity Contract) for the benefit of another person that holds any 

financial instrument or contract held for investment (including, but not limited 

to, a share or stock in a corporation, a note, bond, debenture, or other evidence 

of indebtedness, a currency or commodity transaction, a credit default swap, a 

swap based upon a nonfinancial index, a notional principal contract, an 

Insurance Contract or Annuity Contract, and any option or other derivative 

instrument). 

v) The term ''Equity Interest" means, in the case of a partnership that is a 

Financial Institution, either a capital or profits interest in the partnership. In 

the case of a trust that is a Financial Institution, an Equity Interest is 

considered to be held by any person treated as a settlor or beneficiary of all or 

a portion of the trust, or any other natural person exercising ultimate effective 

control over the trust. A Specified U.S. Person shall be treated as being a 

beneficiary of a foreign trust if such Specified U.S. Person has the right to 

receive directly or indirectly (for example, through a nominee) a mandatory 

distribution or may receive, directly or indirectly, a discretionary distribution 

from the trust. 

w) The term ''Insurance Contract" means a contract (other than an Annuity 

Contract) under which the issuer agrees to pay an amount upon the occurrence 

of a specified contingency involving mortality, morbidity, accident, liability, or 

property risk. 

x) The term "Annuity Contract" means a contract under which the issuer agrees 

to make payments for a period of time determined in whole or in part by 

reference to the life expectancy of one or more individuals. The term also 

includes a contract that is considered to be an Annuity Contract in accordance 

with the law, regulation, or practice of the jurisdiction in which the contract 

was issued, and under which the issuer agrees to make payments for a term of 

years. 

y) The term "Cash Value Insurance Contract" means an Insurance Contract 

(other than an indemnity reinsurance contract between two insurance 

companies) that has a Cash Value greater than $50,000. 

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z) The term "Cash Value" means the greater of (i) the amount that the 

policyholder is entitled to receive upon surrender or termination of the 

contract (determined without reduction for any surrender charge or policy 

loan), and (ii) the amount the policyholder can borrow under or with regard to 

the contract. Notwithstanding the foregoing, the term "Cash Value" does not 

include an amount payable under an Insurance Contract as: 

(1) a personal injury or sickness benefit or other benefit providing 

indemnification of an economic loss incurred upon the occurrence of 

the event insured against; 

(2) a refund to the policyholder of a previously paid premium under an 

Insurance Contract (other than under a life insurance contract) due to 

policy cancellation or termination, decrease in risk exposure during the 

effective period of the Insurance Contract, or arising from a 

redetermination of the premium due to correction of posting or other 

similar error; or 

(3) a policyholder dividend based upon the underwriting experience of the 

contract or group involved. 

aa) The term "Reportable Account" means a U.S. Reportable Account or a New 

Zealand Reportable Account, as the context requires. 

bb) The term ''New Zealand Reportable Account" means a Financial Account 

maintained by a Reporting U.S. Financial Institution if: (i) in the case of a 

Depository Account, the account is held by an individual resident in New 

Zealand and more than $10 of interest is paid to such account in any given 

calendar year; or (ii) in the case of a Financial Account other than a 

Depository Account, the Account Holder is a resident of New Zealand, 

including an Entity that certifies that it is resident in New Zealand for tax 

purposes, with respect to which U.S. source income that is subject to reporting 

under chapter 3 of subtitle A or chapter 61 of subtitle F of the U.S. Internal 

Revenue Code is paid or credited. 

cc) The term ''U.S. Reportable Account" means a Financial Account maintained 

by a Reporting New Zealand Financial Institution and held by one or more 

Specified U.S. Persons or by a Non-U.S. Entity with one or more Controlling 

Persons that is a Specified U.S. Person. Notwithstanding the foregoing, an 

account shall not be treated as a U.S. Reportable Account if such account is 

not identified as a U.S. Reportable Account after application of the due 

diligence procedures in Annex I. 

dd) The term "Account Holder" means the person listed or identified as the 

holder of a Financial Account by the Financial Institution that maintains the 

account. A person, other than a Financial Institution, holding a Financial 

Account for the benefit or account of another person as agent, custodian, 

nominee, signatory, investment advisor, or intermediary, is not treated as 

holding the account for purposes of this Agreement, and such other person is 

treated as holding the account. For purposes of the immediately preceding 

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sentence, the term "Financial Institution" does not include a Financial 

Institution organized or incorporated in a U.S. Territory. In the case of a Cash 

Value Insurance Contract or an Annuity Contract, the Account Holder is any 

person entitled to access the Cash Value or change the beneficiary of the 

contract. If no person can access the Cash Value or change the beneficiary, the 

Account Holder is any person named as the owner in the contract and any 

person with a vested entitlement to payment under the terms of the contract. 

Upon the maturity of a Cash Value Insurance Contract or an Annuity Contract, 

each person entitled to receive a payment under the contract is treated as an 

Account Holder. 

ee) The term ''U.S. Person" means a U.S. citizen or resident individual, a 

partnership or corporation organized in the United States or under the laws of 

the United States or any State thereof, a trust if (i) a court within the United 

States would have authority under applicable law to render orders or 

judgments concerning substantially all issues regarding administration of the 

trust; and (ii) one or more U.S. persons have the authority to control all 

substantial decisions of the trust, or an estate of a decedent that is a citizen or 

resident of the United States. This subparagraph l(ee) shall be interpreted in 

accordance with the U.S. Internal Revenue Code. 

ft) The term "Specified U.S. Person" means a U.S. Person, other than: (i) a 

corporation the stock of which is regularly traded on one or more established 

securities markets; (ii) any corporation that is a member of the same expanded 

affiliated group, as defined in section 1471(e)(2) of the U.S. Internal Revenue 

Code, as a corporation described in clause (i); (iii) the United States or any 

wholly owned agency or instrumentality thereof; (iv) any State of the United 

States, any U.S. Territory, any political subdivision of any of the foregoing, or 

any wholly owned agency or instrumentality of any one or more of the 

foregoing; (v) any organization exempt from taxation under section 50l(a) of 

the U.S. Internal Revenue Code or an individual retirement plan as defined in 

section 770l(a)(37) of the U.S. Internal Revenue Code; (vi) any bank as 

defmed in section 581 of the U.S. Internal Revenue Code; (vii) any real estate 

investment trust as defmed in section 856 of the U.S. Internal Revenue Code; 

(viii) any regulated investment company as defined in section 851 of the U.S. 

Internal Revenue Code or any entity registered with the U.S. Securities and 

Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. 

80a-64); (ix) any common trust fund as defined in section 584(a) of the U.S. 

Internal Revenue Code; (x) any trust that is exempt from tax under section 

664(c) of the U.S. Internal Revenue Code or that is described in section 

4947(a)(l) of the U.S. Internal Revenue Code; (xi) a dealer in securities, 

commodities, or derivative financial instruments (including notional principal 

contracts, futures, forwards, and options) that is registered as such under the 

laws of the United States or any State; (xii) a broker as defined in section 

6045(c) of the U.S. Internal Revenue Code; or (xiii) any tax-exempt trust 

under a plan that is described in section 403(b) or section 457(b) of the U.S. 

Internal Revenue Code. 

gg) The term ''Entity" means a legal person or a legal arrangement such as a trust. 

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hh) The term "Non-U.S. Entity" means an Entity that is not a U.S. Person. 

ii) The term ''U.S. Source Withholdable Payment" means any payment of 

interest (including any original issue discount), dividends, rents, salaries, 

wages, premiums, annuities, compensations, remunerations, emoluments, and 

other fixed or determinable annual or periodical gains, profits, and income, if 

such payment is from sources within the United States. Notwithstanding the 

foregoing, a U.S. Source Withholdable Payment does not include any payment 

that is not treated as a withholdable payment in relevant U.S. Treasury 

Regulations. 

iD An Entity is a "Related Entity" of another Entity if either Entity controls the 

other Entity, or the two Entities are under common control. For this purpose 

control includes direct or indirect ownership of more than 50 percent of the 

vote or value in an Entity. Notwithstanding the foregoing, New Zealand may 

treat an Entity as not a Related Entity of another Entity if the two Entities are 

not members of the same expanded affiliated group as defined in section 

1471(e)(2) of the U.S. Internal Revenue Code. 

kk) The term ''U.S. TIN'' means a U.S. federal taxpayer identifying number. 

II) The term ''New Zealand TIN'' means a New Zealand taxpayer identifying 

number. 

mm) The term "Controlling Persons" means the natural persons who exercise 

control over an Entity. In the case of a trust, such term means the settlor, the 

trustees, the protector (if any), the beneficiaries or class of beneficiaries, and 

any other natural person exercising ultimate effective control over the trust, 

and in the case of a legal arrangement other than a trust, such term means 

persons in equivalent or similar positions. The term "Controlling Persons" 

shall be interpreted in a manner consistent with the Financial Action Task 

Force Recommendations. 

2. Any term not otherwise defined in this Agreement shall, unless the context otherwise 

requires or the Competent Authorities agree to a common meaning (as permitted by domestic 

law), have the meaning that it has at that time under the law of the Party applying this 

Agreement, any meaning under the applicable tax laws of that Party prevailing over a 

meaning given to the term under other laws of that Party. 

Article 2 

Obligations to Obtain and Exchange Information with Respect to Reportable Accounts 

1. Subject to the provisions of Article 3 of this Agreement, each Party shall obtain the 

information specified in paragraph 2 of this Article with respect to all Reportable Accounts 

and shall annually exchange this information with the other Party on an automatic basis 

pursuant to the provisions of Article 25 of the Convention. 

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2. The information to be obtained and exchanged is: 

a) In the case of New Zealand with respect to each U.S. Reportable Account of 

each Reporting New Zealand Financial Institution: 

(1) the name, address, and U.S. TIN of each Specified U.S. Person that is 

an Account Holder of such account and, in the case of a Non-U.S. 

Entity that, after application of the due diligence procedures set forth in 

Annex I, is identified as having one or more Controlling Persons that is 

a Specified U.S. Person, the name, address, and U.S. TIN (if any) of 

such entity and each such Specified U.S. Person; 

(2) the account number (or functional equivalent in the absence of an 

account number); 

(3) the name and identifying number of the Reporting New Zealand 

Financial Institution; 

(4) the account balance or value (including, in the case of a Cash Value 

Insurance Contract or Annuity Contract, the Cash Value or surrender 

value) as of the end of the relevant calendar year or other appropriate 

reporting period or, if the account was closed during such year, 

immediately before closure; 

(5) in the case of any Custodial Account: 

(A) the total gross amount of interest, the total gross amount of 

dividends, and the total gross amount of other income 

generated with respect to the assets held in the account, in each 

case paid or credited to the account (or with respect to the 

account) during the calendar year or other appropriate reporting 

period; and 

(B) the total gross proceeds from the sale or redemption of property 

paid or credited to the account during the calendar year or other 

appropriate reporting period with respect to which the 

Reporting New Zealand Financial Institution acted as a 

custodian, broker, nominee, or otherwise as an agent for the 

Account Holder; 

(6) in the case of any Depository Account, the total gross amount of 

interest paid or credited to the account during the calendar year or 

other appropriate reporting period; and 

(7) in the case of any account not described in subparagraph 2(a)(5) or 

2(a)(6) of this Article, the total gross amount paid or credited to the 

Account Holder with respect to the account during the calendar year or 

other appropriate reporting period with respect to which the Reporting 

New Zealand Financial Institution is the obligor or debtor, including 

the aggregate amount of any redemption payments made to the 

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Account Holder during the calendar year or other appropriate reporting 

period. 

b) In the case of the United States, with respect to each New Zealand Reportable 

Account of each Reporting U.S. Financial Institution: 

(1) the name, address, and New Zealand TIN of any person that is a 

resident of New Zealand and is an Account Holder of the account; 

(2) the account number (or the functional equivalent in the absence of an 

account number); 

(3) the name and identifying number of the Reporting U.S. Financial 

Institution; 

(4) the gross amount of interest paid on a Depository Account; 

(5) the gross amount of U.S. source dividends paid or credited to the 

account; and 

(6) the gross amount of other U.S. source income paid or credited to the 

account, to the extent subject to reporting under chapter 3 of subtitle A 

or chapter 61 of subtitle F of the U.S. Internal Revenue Code. 

Article 3 

Time and Manner of Exchange of Information 

1. For purposes of the exchange obligation in Article 2 of this Agreement, the amount 

and characterization of payments made with respect to a U.S. Reportable Account may be 

determined in accordance with the principles of the tax laws of New Zealand, and the amount 

and characterization of payments made with respect to a New Zealand Reportable Account 

may be determined in accordance with principles of U.S. federal income tax law. 

2. For purposes of the exchange obligation in Article 2 of this Agreement, the 

information exchanged shall identify the currency in which each relevant amount is 

denominated. 

3. With respect to paragraph 2 of Article 2 of this Agreement, information is to be 

obtained and exchanged with respect to 2014 and all subsequent years, except that: 

a) In the case of New Zealand: 

(1) the information to be obtained and exchanged with respect to 2014 is 

the information described in subparagraphs 2(a)(1) through 2(a)(4) of 

Article 2 of this Agreement; 

(2) the information to be obtained and exchanged with respect to 2015 is 

the information described in subparagraphs 2(a)(l) through 2(a)(7) of 

Article 2 of this Agreement, except for gross proceeds described in 

subparagraph 2(a)(5)(B) of Article 2 of this Agreement; and 

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(3) the information to be obtained and exchanged with respect to 2016 and 

subsequent years is the information described in subparagraphs 2(a)(1) 

through 2(a)(7) of Article 2 of this Agreement; 

b) In the case of the United States, the information to be obtained and exchanged 

with respect to 2014 and subsequent years is all of the information identified 

in subparagraph 2(b) of Article 2 of this Agreement. 

4. Notwithstanding paragraph 3 of this Article, with respect to each Reportable Account 

that is maintained by a Reporting Financial Institution as of June 30, 2014, and subject to 

paragraph 4 of Article 6 of this Agreement, the Parties are not required to obtain and include 

in the exchanged information the New Zealand TIN or the U.S. TIN, as applicable, of any 

relevant person if such taxpayer identifying number is not in the records of the Reporting 

Financial Institution. In such a case, the Parties shall obtain and include in the exchanged 

information the date of birth of the relevant person, if the Reporting Financial Institution has 

such date of birth in its records. 

5. Subject to paragraphs 3 and 4 of this Article, the information described in Article 2 of 

this Agreement shall be exchanged within nine months after the end of the calendar year to 

which the information relates. 

6. The Competent Authorities of New Zealand and the United States shall enter into an 

arrangement under the mutual agreement procedure provided for in Article 24 of the 

Convention, which shall: 

a) establish the procedures for the automatic exchange obligations described in 

Article 2 of this Agreement; 

b) prescribe rules and procedures as may be necessary to implement Article 5 of 

this Agreement; and 

c) establish as necessary procedures for the exchange of the information reported 

under subparagraph 1(b) of Article 4 of this Agreement. 

7. All information exchanged shall be subject to the confidentiality and other protections 

provided for in the Convention, including the provisions limiting the use of the information 

exchanged. 

Article 4 

Application of FATCA to New Zealand Financial Institutions 

1. Treatment of Reporting New Zealand Financial Institutions. Each Reporting New 

Zealand Financial Institution shall be treated as complying with, and not subject to 

withholding under, section 1471 of the U.S. Internal Revenue Code if New Zealand complies 

with its obligations under Articles 2 and 3 of this Agreement with respect to such Reporting 

New Zealand Financial Institution, and the Reporting New Zealand Financial Institution: 

a) identifies U.S. Reportable Accounts and reports annually to the New Zealand 

Competent Authority the information required to be reported in subparagraph 

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2(a) of Article 2 of this Agreement in the time and manner described in Article 

3 of this Agreement; 

b) for eac? of 2015 and 2016, reports annually to the New Zealand Competent 

Authonty the name of each Nonparticipating Financial Institution to which it 

has made payments and the aggregate amount of such payments; 

c) complies with the applicable registration requirements on the IRS FATCA 

registration website; 

d) to the extent that a Reporting New Zealand Financial Institution is (i) acting as 

a qualified intermediary (for purposes of section 1441 of the U.S. Internal 

Revenue Code) that has elected to assume primary withholding responsibility 

under chapter 3 of subtitle A of the U.S. Internal Revenue Code; (ii) a foreign 

partnership that has elected to act as a withholding foreign partnership (for 

purposes of both sections 1441 and 1471 of the U.S. Internal Revenue Code); 

or (iii) a foreign trust that has elected to act as a withholding foreign trust (for 

purposes of both sections 1441 and 1471 of the U.S. Internal Revenue Code), 

withholds 30 percent of any U.S. Source Withholdable Payment to any 

Nonparticipating Financial Institution; and · 

e) in the case of a Reporting New Zealand Financial Institution that is not 

described in subparagraph 1(d) of this Article and that makes a payment of, or 

acts as an intermediary with respect to, a U.S. Source Withholdable Payment 

to any Nonparticipating Financial Institution, the Reporting New Zealand 

Financial Institution provides to any immediate payor of such U.S. Source 

Withholdable Payment the information required for withholding and reporting 

to occur with respect to such payment. 

Notwithstanding the foregoing, a Reporting New Zealand Financial Institution with respect to 

which the conditions of this paragraph 1 are not satisfied shall not be subject to withholding 

under section 1471 of the U.S. Internal Revenue Code unless such Reporting New Zealand 

Financial Institution is treated by the IRS as a Nonparticipating Financial Institution pursuant 

to subparagraph 2(b) of Article 5 of this Agreement. 

2. Suspension of Rules Relating to Recalcitrant Accounts. The United States shall 

not require a Reporting New Zealand Financial Institution to withhold tax under section 1471 

or 1472 of the U.S. Internal Revenue Code with respect to an account held by a recalcitrant 

account holder (as defined in section 1471(d)(6) of the U.S. Internal Revenue Code), or to 

close such account, if the U.S. Competent Authority receives the information set forth in 

subparagraph 2(a) of Article 2 of this Agreement, subject to the provisions of Article 3 of this 

Agreement, with respect to such account. 

3. Specific Treatment of New Zealand Retirement Plans. The United States shall 

treat as deemed-compliant FFis or exempt beneficial owners, as appropriate, for purposes of 

sections 1471 and 1472 of the U.S. Internal Revenue Code New Zealand retirement plans 

described in Annex II. For this purpose, a New Zealand retirement plan includes an Entity 

established or located in, and regulated by, New Zealand, or a predetermined contractual or 

legal arrangement, operated to provide pension or retirement benefits or earn income for 

providing such benefits under the laws of New Zealand and regulated with respect to 

13
contributions, distributions, reporting, sponsorship, and taxation. 

4. Identification and Treatment of Other Deemed-Compliant FFis and Exempt 

Beneficial Owners. The United States shall treat each Non-Reporting New Zealand 

Financial Institution as a deemed-compliant FFI or as an exempt beneficial owner, as 

appropriate, for purposes of section 1471 of the U.S. Internal Revenue Code. 

5. Special Rules Regarding Related Entities and Branches That Are 

Nonparticipating Financial Institutions. If a New Zealand Financial Institution, that 

otherwise meets the requirements described in paragraph 1 of this Article or is described in 

paragraph 3 or 4 of this Article, has a Related Entity or branch that operates in a jurisdiction 

that prevents such Related Entity or branch from fulfilling the requirements of a participating 

FFI or deemed-compliant FFI for purposes of section 1471 of the U.S. Internal Revenue Code 

or has a Related Entity or branch that is treated as a Nonparticipating Financial Institution 

solely due to the expiration of the transitional rule for limited FFis and limited branches 

under relevant U.S. Treasury Regulations, such New Zealand Financial Institution shall 

continue to be in compliance with the terms of this Agreement and shall continue to be 

treated as a deemed-compliant FFI or exempt beneficial owner, as appropriate, for purposes 

of section 1471 of the U.S. Internal Revenue Code, provided that: 

a) the New Zealand Financial Institution treats each such Related Entity or 

branch as a separate Nonparticipating Financial Institution for purposes of all 

the reporting and withholding requirements of this Agreement and each such 

Related Entity or branch identifies itself to withholding agents as a 

Nonparticipating Financial Institution; 

b) each such Related Entity or branch identifies its U.S. accounts and reports the 

information with respect to those accounts as required under section 1471 of 

the U.S. Internal Revenue Code to the extent permitted under the relevant laws 

pertaining to the Related Entity or branch; and 

c) such Related Entity or branch does not specifically solicit U.S. accounts held 

by persons that are not resident in the jurisdiction where such Related Entity 

or branch is located or accounts held by Nonparticipating Financial 

Institutions that are not established in the jurisdiction where such Related 

Entity or branch is located, and such Related Entity or branch is not used by 

the New Zealand Financial Institution or any other Related Entity to 

circumvent the obligations under this Agreement or under section 1471 of the 

U.S. Internal Revenue Code, as appropriate. 

6. Coordination of Timing. Notwithstanding paragraphs 3 and 5 of Article 3 of this 

Agreement: 

a) New Zealand shall not be obligated to obtain and exchange information with 

respect to a calendar year that is prior to the calendar year with respect to 

which similar information is required to be reported to the IRS by participating 

FFis pursuant to relevant U.S. Treasury Regulations; 

b) New Zealand shall not be obligated to begin exchanging information prior to 

the date by which participating FFis are required to report similar information 

14
to the IRS under relevant U.S. Treasury Regulations; 

c) the United States shall not be obligated to obtain and exchange information 

with respect to a calendar year that is prior to the first calendar year with 

respect to which New Zealand is required to obtain and exchange information; 

and 

d) the United States shall not be obligated to begin exchanging information prior 

to the date by which New Zealand is required to begin exchanging 

information. 

7. Coordination of Definitions with U.S. Treasury Regulations. Notwithstanding 

Article 1 of this Agreement and the definitions provided in the Annexes to this Agreement, in 

implementing this Agreement, New Zealand may use, and may permit New Zealand 

Financial Institutions to use, a definition in relevant U.S. Treasury Regulations in lieu of a 

corresponding definition in this Agreement, provided that such application would not 

frustrate the purposes of this Agreement. 

Article 5 

Collaboration on Compliance and Enforcement 

1. Minor and Administrative Errors. Subject to any further terms set forth in a 

competent authority arrangement concluded pursuant to paragraph 6 of Article 3 of this 

Agreement, the Competent Authority of the United States may make an inquiry directly to a 

Reporting Financial Institution in New Zealand where it has reason to believe that minor or 

administrative errors may have led to incorrect or incomplete information reporting or 

resulted in other infringements of this Agreement. The competent authority arrangement may 

provide that the Competent Authority of the United States shall notify the Competent 

Authority of New Zealand when it makes such an inquiry of a Reporting Financial Institution 

in New Zealand regarding the Reporting Financial Institution's compliance with the 

conditions set forth in this Agreement. The Competent Authority of New Zealand shall notify 

the Competent Authority of the United States where it has reason to believe that minor or 

administrative errors may have led to incorrect or incomplete reporting or resulted in other 

infringements of this Agreement. The Competent Authority of each Party shall apply its 

domestic law to obtain corrected and/or complete information or to resolve other 

infringements of this Agreement. 

2. Significant Non-Compliance. 

a) A Competent Authority shall notify the Competent Authority of the other Party 

when the first-mentioned Competent Authority has determined that there is 

significant non-compliance with the obligations under this Agreement with 

respect to a Reporting Financial Institution in the other jurisdiction. The 

Competent Authority of such other Party shall apply its domestic law 

(including applicable penalties) to address the significant non-compliance 

described in the notice. 

b) If, in the case of a Reporting New Zealand Financial Institution, such 

enforcement actions do not resolve the non-compliance within a period of 18 

15
months after notification of significant non-compliance is first provided, the 

United States shall treat the Reporting New Zealand Financial Institution as a 

Nonparticipating Financial Institution pursuant to this subparagraph 2(b). 

3. Reliance on Third Partv Service Providers. Each Party may allow Reporting 

Financial Institutions to use third party service providers to fulfill the obligations imposed on 

such Reporting Financial Institutions by a Party, as contemplated in this Agreement, but these 

obligations shall remain the responsibility of the Reporting Financial Institutions. 

4. Prevention of Avoidance. The Parties shall implement as necessary requirements to 

prevent Financial Institutions from adopting practices intended to circumvent the reporting 

required under this Agreement 

Article 6 

Mutual Commitment to Continue to Enhance the Effectiveness of Information 

Exchange and Transparency 

1. Reciprocitv. The Government of the United States acknowledges the need to achieve 

equivalent levels of reciprocal automatic information exchange with the Government of New 

Zealand. The Government of the United States is committed to further improve transparency 

and enhance the exchange relationship with New Zealand by pursuing the adoption of 

regulations and advocating and supporting relevant legislation to achieve such equivalent 

levels of reciprocal automatic information exchange. 

2. Treatment of Passthru Pavments and Gross Proceeds. The Parties are committed 

to work together, along with Partner Jurisdictions, to develop a practical and effective 

alternative approach to achieve the policy objectives of foreign passthru payment and gross 

proceeds withholding that minimizes burden. 

3. Development of Common Reporting and Exchange Model. The Parties are 

committed to working with Partner Jurisdictions and the Organisation for Economic Cooperation and Development on adapting the terms of this Agreement and other agreements 

between the United States and Partner Jurisdictions to a common model for automatic 

exchange of information, including the development of reporting and due diligence standards 

for financial institutions. 

4. Documentation of Accounts Maintained as of .June 30. 2014. With respect to 

Reportable Accounts maintained by a Reporting Financial Institution as of June 30, 2014: 

a) The United States commits to establish, by January 1, 2017, for reporting with 

respect to 2017 and subsequent years, rules requiring Reporting U.S. Financial 

Institutions to obtain and report the New Zealand TIN of each Account Holder 

of a New Zealand Reportable Account as required pursuant to subparagraph 

2(b)(1) of Article 2 of this Agreement; and 

b) New Zealand commits to establish, by January I, 2017, for reporting with 

respect to 20 17 and subsequent years, rules requiring Reporting New Zealand 

Financial Institutions to obtain the U.S. TIN of each Specified U.S. Person as 

required pursuant to subparagraph 2(a)(l) of Article 2 of this Agreement. 

16
Article 7 

Consistency in the Application ofFATCA to Partner Jurisdictions 

1. New Zealand shall be granted the benefit of any more favorable terms under Article 4 

or Annex I of this Agreement relating to the application of FATCA to New Zealand Financial 

Institutions afforded to another Partner Jurisdiction under a signed bilateral agreement 

pursuant to which the other Partner Jurisdiction commits to undertake the same obligations as 

New Zealand described in Articles 2 and 3 of this Agreement, and subject to the same terms 

and conditions as described therein and in Articles 5 through 9 of this Agreement. 

2. The United States shall notify New Zealand of any such more favorable terms, and 

such more favorable terms shall apply automatically under this Agreement as if such terms 

were specified in this Agreement and effective as of the date of the signing of the agreement 

incotporating the more favorable terms, unless New Zealand declines in writing the 

application thereof. 

Article 8 

Consultations and Amendments 

1. In case any difficulties in the implementation of this Agreement arise, either Party 

may request consultations to develop appropriate measures to ensure the fulfillment of this 

Agreement. 

2. This Agreement may be amended by written mutual agreement of the Parties. Unless 

otherwise agreed upon, such an amendment shall enter into force through the same 

procedures as set forth in paragraph 1 of Article 10 of this Agreement. 

Article 9 

Annexes 

The Annexes form an integral part of this Agreement. 

Article 10 

Term of Agreement 

1. The Parties shall notify each other in writing when their necessary internal procedures 

for entry into force have been completed. The Agreement shall enter into force on the date of 

the later of such notifications, and shall continue in force until terminated. 

2. Either Party may terminate this Agreement by giving notice of termination in writing 

to the other Party. Such termination shall become effective on the ftrst day of the month 

following the expiration of a period of 12 months after the date of the notice of termination. 

3. The Parties shall, prior to December 31, 2016, consult in good faith to amend this 

Agreement as necessary to reflect progress on the commitments set forth in Article 6 of this 

Agreement. 

In witness whereof, the undersigned, being duly authorized thereto by their respective 

Governments, have signed this Agreement. 

17
Done at~ duplicate in the English language, this ti:lay o~, zd!/_. 

FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA: 

FOR THE GOVERNMENT OF 

NEW ZEALAND: 

18
ANNEX I 

DUE DILIGENCE OBLIGATIONS FOR IDENTIFYING AND REPORTING ON U.S. 

REPORTABLE ACCOUNTS AND ON PAYMENTS TO CERTAIN 

NONPARTICIPATING FINANCIAL INSTITUTIONS 

I. General 

A. New Zealand shall require that Reporting New Zealand Financial 

Institutions apply the due diligence procedures contained in this Annex I to 

identify U.S. Reportable Accounts and accounts held by Nonparticipating 

Financial Institutions. 

B. For purposes of the Agreement, 

1. All dollar amounts are in U.S. dollars and shall be read to 

include the equivalent in other currencies. 

2. Except as otherwise provided herein, the balance or value of an 

account shall be determined as of the last day of the calendar 

year or other appropriate reporting period. 

3. Where a balance or value threshold is to be determined as of 

June 30, 2014 under this Annex I, the relevant balance or value 

shall be determined as of that day, and where a balance or value 

threshold is to be determined as of the last day of a calendar 

year under this Annex I, the relevant balance or value shall be 

determined as of the last day of the calendar year or other 

appropriate reporting period. 

4. Subject to subparagraph E(l) of section II of this Annex I, an 

account shall be treated as a U.S. Reportable Account beginning 

as of the date it is identified as such pursuant to the due 

diligence procedures in this Annex I. 

5. Unless otherwise provided, information with respect to a U.S. 

Reportable Account shall be reported annually in the calendar 

year following the year to which the information relates. 

C. As an alternative to the procedures described in each section of this 

Annex I, New Zealand may permit Reporting New Zealand Financial 

Institutions to rely on the procedures described in relevant U.S. Treasury 

Regulations to establish whether an account is a U.S. Reportable Account or 

an account held by a Nonparticipating Financial Institution. New Zealand 

may permit Reporting New Zealand Financial Institutions to make such 

election separately for each section of this Annex I either with respect to all 

relevant Financial Accounts or, separately, with respect to any clearly 

identified group of such accounts (such as by line of business or the location 

of where the account is maintained). 

19
II. Preexisting Individual Accounts. The following rules and procedures apply for 

purposes of identifying U.S. Reportable Accounts among Preexisting Accounts held by 

individuals ("Preexisting Individual Accounts"). 

A. Accounts Not Required to Be Reviewed. Identified. or Reoorted. 

Unless the Reporting New Zealand Financial Institution elects otherwise, 

either with respect to all Preexisting Individual Accounts or, separately, with 

respect to any clearly identified group of such accounts, where the 

implementing rules in New Zealand provide for such an election, the 

following Preexisting Individual Accounts are not required to be reviewed, 

identified, or reported as U.S. Reportable Accounts: 

1. Subject to subparagraph E(2) of this section, a Preexisting 

Individual Account with a balance or value that does not exceed 

$50,000 as of June 30, 2014. 

2. Subject to subparagraph E(2) of this section, a Preexisting 

Individual Account that is a Cash Value Insurance Contract or 

an Annuity Contract with a balance or value of $250,000 or less 

as of June 30, 2014. 

3. A Preexisting Individual Account that is a Cash Value Insurance 

Contract or an Annuity Contract, provided the law or regulations 

of New Zealand or the United States effectively prevent the sale 

of such a Cash Value Insurance Contract or an Annuity Contract 

to U.S. residents (e.g., if the relevant Financial Institution does 

not have the required registration under U.S. law, and the law of 

New Zealand requires reporting or withholding with respect to 

insurance products held by residents of New Zealand). 

4. A Depository Account with a balance of $50,000 or less. 

B. Review Procedures for Preexisting Individual Accounts With a 

Balance or Value as of .June 30, 2014, that Exceeds $50.000 ($250.000 for a 

Cash Value Insurance Contract or Annuity Contract), But Does Not 

Exceed $1.000.000 ("Lower Value Accounts"). 

1. Electronic Record Search. The Reporting New Zealand Financial 

Institution must review electronically searchable data maintained by 

the Reporting New Zealand Financial Institution for any of the 

following U.S. indicia: 

a) Identification of the Account Holder as a U.S. citizen or 

resident; 

b) Unambiguous indication of a U.S. place ofbirth; 

c) Current U.S. mailing or residence address (including a U.S. post 

office box); 

20
d) Current U.S. telephone number; 

e) Standing instructions to transfer funds to an account maintained 

in the United States; 

f) Currently effective power of attorney or signatory authority 

granted to a person with a U.S. address; or 

g) An "in-care-of' or "hold mail" address that is the sole address 

the Reporting New Zealand Financial Institution has on file for 

the Account Holder. In the case of a Preexisting Individual 

Account that is a Lower Value Account, an "in-care-of' address 

outside the United States or "hold mail" address shall not be 

treated as U.S. indicia. 

2. If none of the U.S. indicia listed in subparagraph B(l) of this section 

are discovered in the electronic search, then no further action is 

required until there is a change in circumstances that results in one or 

more U.S. indicia being associated with the account, or the account 

becomes a High Value Account described in paragraph D of this 

section. 

3. If any of the U.S. indicia listed in subparagraph B(l) of this section are 

discovered in the electronic search, or if there is a change in 

circumstances that results in one or more U.S. indicia being associated 

with the account, then the Reporting New Zealand Financial Institution 

must treat the account as a U.S. Reportable Account unless it elects to 

apply subparagraph B(4) of this section and one of the exceptions in 

such subparagraph applies with respect to that account. 

4. Notwithstanding a finding of U.S. indicia under subparagraph B(l) of 

this section, a Reporting New Zealand Financial Institution is not 

required to treat an account as a U.S. Reportable Account if: 

a) Where the Account Holder information unambiguously 

indicates a U.S. place of birth, the Reporting New Zealand 

Financial Institution obtains, or has previously reviewed and 

maintains a record of: 

(l) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); 

(2) A non-U.S. passport or other government-issued 

identification evidencing the Account Holder's 

citizenship or nationality in a country other than the 

United States; and 

(3) A copy of the Account Holder's Certificate of Loss of 

21
Nationality of the United States or a reasonable 

explanation of: 

(a) The reason the Account Holder does not have 

such a certificate despite relinquishing U.S. 

citizenship; or 

(b) The reason the Account Holder did not obtain 

U.S. citizenship at birth. 

b) Where the Account Holder information contains a current U.S. 

mailing or residence address, or one or more U.S. telephone 

numbers that are the only telephone numbers associated with 

the account, the Reporting New Zealand Financial Institution 

obtains, or has previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account 

Holder's non-U.S. status. 

c) Where the Account Holder information contains standing 

instructions to transfer funds to an account maintained in the 

United States, the Reporting New Zealand Financial Institution 

obtains, or has previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

may be on an IRS Form W-8 or other similar agreed 

form); and 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account 

Holder's non-U.S. status. 

d) Where the Account Holder information contains a currently 

effective power of attorney or signatory authority granted to a 

person with a U.S. address, has an "in-care-of' address or "hold 

mail" address that is the sole address identified for the Account 

Holder, or has one or more U.S. telephone numbers (if a nonU.S. telephone number is also associated with the account), the 

Reporting New Zealand Financial Institution obtains, or has 

previously reviewed and maintains a record of: 

(1) A self-certification that the Account Holder is neither a 

U.S. citizen nor a U.S. resident for tax purposes (which 

22
may be on an IRS Form W-8 or other similar agreed 

form); or 

(2) Documentary evidence, as defined in paragraph D of 

section VI of this Annex I, establishing the Account 

Holder's non-U.S. status. 

C. Additional Procedures Applicable to Preexisting Individual 

Accounts That Are Lower Value Accounts. 

1. Review of Preexisting Individual Accounts that are Lower Value 

Accounts for U.S. indicia must be completed by June 30, 2016. 

2. If there is a change of circumstances with respect to a Preexisting 

Individual Account that is a Lower Value Account that results in one or 

more U.S. indicia described in subparagraph B(l) of this section being 

associated with the account, then the Reporting New Zealand Financial 

Institution must treat the account as a U.S. Reportable Account unless 

subparagraph B( 4) of this section applies. 

3. Except for Depository Accounts described in subparagraph A(4) of this 

section, any Preexisting Individual Account that has been identified as 

a U.S. Reportable Account under this section shall be treated as a U.S. 

Reportable Account in all subsequent years, unless the Account Holder 

ceases to be a Specified U.S. Person. 

D. Enhanced Review Procedures for Preexisting Individual Accounts 

With a Balance or Value That Exceeds $1,000,000 as of June 30. 2014, or 

December 31 of 2015 or Any Subsequent Year ("High Value Accounts"). 

1. Electronic Record Search. The Reporting New Zealand Financial 

Institution must review electronically searchable data maintained by 

the Reporting New Zealand Financial Institution for any of the U.S. 

indicia described in subparagraph B(l) of this section. 

2. Paper Record Search. If the Reporting New Zealand Financial 

Institution's electronically searchable databases include fields for, and 

capture all of the information described in, subparagraph D(3) of this 

section, then no further paper record search is required. If the 

electronic databases do not capture all of this information, then with 

respect to a High Value Account, the Reporting New Zealand Financial 

Institution must also review the current customer master file and, to the 

extent not contained in the current customer master file, the following 

documents associated with the account and obtained by the Reporting 

New Zealand Financial Institution within the last five years for any of 

the U.S. indicia described in subparagraph B(l) of this section: 

a) The most recent documentary evidence collected with respect to 

the account; 

23
b) The most recent account opening contract or documentation; 

c) The most recent documentation obtained by the Reporting New 

Zealand Financial Institution pursuant to AMUKYC Procedures 

or for other regulatory purposes; 

d) Any power of attorney or signature authority forms currently in 

effect; and 

e) Any standing instructions to transfer funds currently in effect. 

3. Exception Where Databases Contain Sufficient Information. A 

Reporting New Zealand Financial Institution is not required to perform 

the paper record search described in subparagraph D(2) of this section 

if the Reporting New Zealand Financial Institution's electronically 

searchable information includes the following: 

a) The Account Holder's nationality or residence status; 

b) The Account Holder's residence address and mailing address 

currently on file with the Reporting New Zealand Financial 

Institution; 

c) The Account Holder's telephone number(s) currently on file, if 

any, with the Reporting New Zealand Financial Institution; 

d) Whether there are standing instructions to transfer funds in the 

account to another account (including an account at another 

branch of the Reporting New Zealand Financial Institution or 

another Financial Institution); 

e) Whether there is a current "in-care-of" address or "hold mail" 

address for the Account Holder; and 

f) Whether there is any power of attorney or signatory authority 

for the account. 

4. Relationship Manager Inquiry for Actual Knowledge. In addition to 

the electronic and paper record searches described above, the Reporting 

New Zealand Financial Institution must treat as a U.S. Reportable 

Account any High Value Account assigned to a relationship manager 

(including any Financial Accounts aggregated with such High Value 

Account) if the relationship manager has actual knowledge that the 

Account Holder is a Specified U.S. Person. 

5. Effect of Finding U.S. Indicia. 

a) If none of the U.S. indicia listed in subparagraph B(l) of this 

section are discovered in the enhanced review of High Value 

Accounts described above, and the account is not identified as 

24
held by a Specified U.S. Person in subparagraph 0(4) of this 

section, then no further action is required until there is a change 

in circumstances that results in one or more U.S. indicia being 

associated with the account. 

b) If any of the U.S. indicia listed in subparagraph B(l) of this 

section are discovered in the enhanced review of High Value 

Accounts described above, or if there is a subsequent change in 

circumstances that results in one or more U.S. indicia being 

associated with the account, then the Reporting New Zealand 

Financial Institution must treat the account as a U.S. Reportable 

Account unless it elects to apply subparagraph B( 4) of this 

section and one of the exceptions in such subparagraph applies 

with respect to that account. 

c) Except for Depository Accounts described in subparagraph A(4) 

of this section, any Preexisting Individual Account that has been 

identified as a U.S. Reportable Account under this section shall 

be treated as a U.S. Reportable Account in all subsequent years, 

unless the Account Holder ceases to be a Specified U.S. Person. 

E. Additional Procedures Applicable to IDgh Value Accounts. 

1. If a Preexisting Individual Account is a High Value Account as of June 

30, 2014, the Reporting New Zealand Financial Institution must 

complete the enhanced review procedures described in paragraph D of 

this section with respect to such account by June 30, 2015. If based on 

this review such account is identified as a U.S. Reportable Account on 

or before December 31,2014, the Reporting New Zealand Financial 

Institution must report the required information about such account 

with respect to 2014 in the first report on the account and on an annual 

basis thereafter. In the case of an account identified as a U.S. 

Reportable Account after December 31,2014 and on or before June 30, 

2015, the Reporting New Zealand Financial Institution is not required 

to report information about such account with respect to 2014, but must 

report information about the account on an annual basis thereafter. 

2. If a Preexisting Individual Account is not a High Value Account as of 

June 30, 2014, but becomes a High Value Account as of the last day of 

2015 or any subsequent calendar year, the Reporting New Zealand 

Financial Institution must complete the enhanced review procedures 

described in paragraph D of this section with respect to such account 

within six months after the last day of the calendar year in which the 

account becomes a High Value Account. If based on this review such 

account is identified as a U.S. Reportable Account, the Reporting New 

Zealand Financial Institution must report the required information 

about such account with respect to the year in which it is identified as a 

U.S. Reportable Account and subsequent years on an annual basis, 

unless the Account Holder ceases to be a Specified U.S. Person. 

25
3. Once a Reporting New Zealand Financial Institution applies the 

enhanced review procedures described in paragraph D of this section to 

a High Value Account, the Reporting New Zealand Financial Institution 

is not required to re-apply such procedures, other than the relationship 

manager inquiry described in subparagraph D(4) of this section, to the 

same High Value Account in any subsequent year. 

4. If there is a change of circumstances with respect to a High Value 

Account that results in one or more U.S. indicia described in 

subparagraph B(l) of this section being associated with the account, 

then the Reporting New Zealand Financial Institution must treat the 

account as a U.S. Reportable Account unless it elects to apply 

subparagraph B(4) of this section and one of the exceptions in such 

subparagraph applies with respect to that account. 

5. A Reporting New Zealand Financial Institution must implement 

procedures to ensure that a relationship manager identifies any change 

in circumstances of an account. For example, if a relationship manager 

is notified that the Account Holder has a new mailing address in the 

United States, the Reporting New Zealand Financial Institution is 

required to treat the new address as a change in circumstances and, if it 

elects to apply subparagraph B(4) of this section, is required to obtain 

the appropriate documentation from the Account Holder. 

F. Preexisting Individual Accounts That Have Been Documented for 

Certain Other Purposes. A Reporting New Zealand Financial Institution that 

has previously obtained documentation from an Account Holder to establish 

the Account Holder's status as neither a U.S. citizen nor a U.S. resident in 

order to meet its obligations under a qualified intermediary, withholding 

foreign partnership, or withholding foreign trust agreement with the IRS, or to 

fulfill its obligations under chapter 61 of Title 26 of the United States Code, is 

not required to perform the procedures described in subparagraph B(1) of this 

section with respect to Lower Value Accounts or subparagraphs D(1) through 

D(3) of this section with respect to High Value Accounts. 

III. New Individual Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts among Financial Accounts held by individuals and 

opened on or after July 1, 2014 ("New Individual Accounts"). 

A. Accounts Not Required to Be Reviewed. Identified, or Reoorted. 

Unless the Reporting New Zealand Financial Institution elects otherwise, 

either with respect to all New Individual Accounts or, separately, with respect 

to any clearly identified group of such accounts, where the implementing rules 

in New Zealand provide for such an election, the following New Individual 

Accounts are not required to be reviewed, identified, or reported as U.S. 

Reportable Accounts: 

1. A Depository Account unless the account balance exceeds $50,000 at 

the end of any calendar year or other appropriate reporting period. 

2. A Cash Value Insurance Contract unless the Cash Value exceeds 

26
$50,000 at the end of any calendar year or other appropriate reporting 

period. 

B. Other New Individual Accounts. With respect to New Individual 

Accounts not described in paragraph A of this section, upon account opening 

(or within 90 days after the end of the calendar year in which the account 

ceases to be described in paragraph A of this section), the Reporting New 

Zealand Financial Institution must obtain a self-certification, which may be 

part of the account opening documentation, that allows the Reporting New 

Zealand Financial Institution to determine whether the Account Holder is 

resident in the United States for tax purposes (for this purpose, a U.S. citizen 

is considered to be resident in the United States for tax purposes, even if the 

Account Holder is also a tax resident of another jurisdiction) and confirm the 

reasonableness of such self-certification based on the information obtained by 

the Reporting New Zealand Financial Institution in connection with the 

opening of the account, including any documentation collected pursuant to 

AMUKYC Procedures. 

l. If the self-certification establishes that the Account Holder is resident 

in the United States for tax purposes, the Reporting New Zealand 

Financial Institution must treat the account as a U.S. Reportable 

Account and obtain a self-certification that includes the Account 

Holder's U.S. TIN (which may be an IRS Form W-9 or other similar 

agreed form). 

2. If there is a change of circumstances with respect to a New Individual 

Account that causes the Reporting New Zealand Financial Institution to 

know, or have reason to know, that the original self-certification is 

incorrect or unreliable, the Reporting New Zealand Financial 

Institution cannot rely on the original self-certification and must obtain 

a valid self-certification that establishes whether the Account Holder is 

a U.S. citizen or resident for U.S. tax purposes. If the Reporting New 

Zealand Financial Institution is unable to obtain a valid selfcertification, the Reporting New Zealand Financial Institution must 

treat the account as a U.S. Reportable Account. 

IV. Preexisting Entity Accounts. The following rules and procedures apply for purposes 

of identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Preexisting Accounts held by Entities ("Preexisting Entity Accounts"). 

A. Entity Accounts Not Reauired to Be Reviewed. Identified or 

Reported. Unless the Reporting New Zealand Financial Institution elects 

otherwise, either with respect to all Preexisting Entity Accounts or, separately, 

with respect to any clearly identified group of such accounts, where the 

implementing rules in New Zealand provide for such an election, a Preexisting 

Entity Account with an account balance or value that does not exceed 

$250,000 as of June 30, 2014, is not required to be reviewed, identified, or 

reported as a U.S. Reportable Account until the account balance or value 

exceeds $1,000,000. 

27
B. Entity Accounts Subject to Review. A Preexisting Entity Account 

that has an account balance or value that exceeds $250,000 as of June 30, 

2014, and a Preexisting Entity Account that does not exceed $250,000 as of 

June 30, 2014 but the account balance or value of which exceeds $1,000,000 

as of the last day of 2015 or any subsequent calendar year, must be reviewed 

in accordance with the procedures set forth in paragraph D of this section. 

C. Entity Accounts With Respect to Which Reporting Is Required. 

With respect to Preexisting Entity Accounts described in paragraph B of this 

section, only accounts that are held by one or more Entities that are Specified 

U.S. Persons, or by Passive NFFEs with one or more Controlling Persons who 

are U.S. citizens or residents shall be treated as U.S. Reportable Accounts. In 

addition, accounts held by Nonparticipating Financial Institutions shall be 

treated as accounts for which aggregate payments as described in 

subparagraph 1(b) of Article 4 of the Agreement are reported to the New 

Zealand Competent Authority. 

D. Review Procedures for Identifying Entity Accounts With Respect 

to Which Reporting Is Required. For Preexisting Entity Accounts described 

in paragraph B of this section, the Reporting New Zealand Financial 

Institution must apply the following review procedures to determine whether 

the account is held by one or more Specified U.S. Persons, by Passive NFFEs 

with one or more Controlling Persons who are U.S. citizens or residents, or by 

Nonparticipating Financial Institutions: 

1. Determine Whether the Entity Is a Soecified U.S. Person. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant 

to AMUKYC Procedures) to determine whether the information 

indicates that the Account Holder is a U.S. Person. For this 

purpose, information indicating that the Account Holder is a 

U.S. Person includes a U.S. place of incorporation or 

organization, or a U.S. address. 

b) If the information indicates that the Account Holder is a U.S. 

Person, the Reporting New Zealand Financial Institution must 

treat the account as a U.S. Reportable Account unless it obtains 

a self-certification from the Account Holder (which may be on 

an IRS Form W -8 or W -9, or a similar agreed form), or 

reasonably determines based on information in its possession or 

that is publicly available, that the Account Holder is not a 

Specified U.S. Person. 

2. Determine Whether a Non-U.S. Entity Is a Financial Institution. 

a) Review information maintained for regulatory or customer 

relationship purposes (including information collected pursuant 

to AMUKYC Procedures) to determine whether the information 

indicates that the Account Holder is a Financial Institution. 

28
b) If the information indicates that the Account Holder is a 

Financial Institution, or the Reporting New Zealand Financial 

Institution verifies the Account Holder's Global Intermediary 

Identification Number on the published IRS FFI list, then the 

account is not a U.S. Reportable Account. 

3. Determine Whether a Financial Institution Is a Nonparticipating 

Financial Institution Payments to Which Are Subject to Aggregate 

Reporting Under Subparagraph l(b) of Article 4 of the Agreement. 

a) Subject to subparagraph D(3)(b) of this section, a Reporting 

New Zealand Financial Institution may determine that the 

Account Holder is a New Zealand Financial Institution or other 

Partner Jurisdiction Financial Institution if the Reporting New 

Zealand Financial Institution reasonably determines that the 

Account Holder has such status on the basis of the Account 

Holder's Global Intermediary Identification Number on the 

published IRS FFI list or other information that is publicly 

available or in the possession of the Reporting New Zealand 

Financial Institution, as applicable. In such case, no further 

review, identification, or reporting is required with respect to 

the account. 

b) If the Account Holder is a New Zealand Financial Institution or 

other Partner Jurisdiction Financial Institution treated by the 

IRS as a Nonparticipating Financial Institution, then the account 

is not a U.S. Reportable Account, but payments to the Account 

Holder must be reported as contemplated in subparagraph l(b) 

of Article 4 of the Agreement. 

c) If the Account Holder is not a New Zealand Financial 

Institution or other Partner Jurisdiction Financial Institution, 

then the Reporting New Zealand Financial Institution must treat 

the Account Holder as a Nonparticipating Financial Institution 

payments to which are reportable under subparagraph l(b) of 

Article 4 of the Agreement, unless the Reporting New Zealand 

Financial Institution: 

(1) Obtains a self-certification (which may be on an IRS 

Form W -8 or similar agreed form) from the Account 

Holder that it is a certified deemed-compliant FFI, or an 

exempt beneficial owner, as those terms are defined in 

relevant U.S. Treasury Regulations; or 

(2) In the case of a participating FFI or registered deemedcompliant FFI, verifies the Account Holder's Global 

Intermediary Identification Number on the published 

IRS FFI list. 

29
4. Determine Whether an Account Held by an NFFE Is a U.S. 

Reportable Account. With respect to an Account Holder of a 

Preexisting Entity Account that is not identified as either a U.S. Person 

or a Financial Institution, the Reporting New Zealand Financial 

Institution must identify (i) whether the Account Holder has 

Controlling Persons, (ii) whether the Account Holder is a Passive 

NFFE, and (iii) whether any of the Controlling Persons of the Account 

Holder is a U.S. citizen or resident. In making these determinations the 

Reporting New Zealand Financial Institution must follow the guidance 

in subparagraphs D(4)(a) through D(4)(d) of this section in the order 

most appropriate under the circumstances. 

a) For purposes of determining the Controlling Persons of an 

Account Holder, a Reporting New Zealand Financial Institution 

may rely on information collected and maintained pursuant to 

AMUKYC Procedures. 

b) For purposes of determining whether the Account Holder is a 

Passive NFFE, the Reporting New Zealand Financial Institution 

must obtain a self-certification (which may be on an IRS Form 

W-8 or W-9, or on a similar agreed form) from the Account 

Holder to establish its status, unless it has information in its 

possession or that is publicly available, based on which it can 

reasonably determine that the Account Holder is an Active 

NFFE. 

c) For purposes of determining whether a Controlling Person of a 

Passive NFFE is a U.S. citizen or resident for tax purposes, a 

Reporting New Zealand Financial Institution may rely on: 

(1) Information collected and maintained pursuant to 

AMUKYC Procedures in the case of a Preexisting 

Entity Account held by one or more NFFEs with an 

account balance or value that does not exceed 

$1,000,000; or 

(2) A self-certification (which may be on an IRS Form W-8 

or W -9, or on a similar agreed form) from the Account 

Holder or such Controlling Person in the case of a 

Preexisting Entity Account held by one or more NFFEs 

with an account balance or value that exceeds 

$1,000,000. 

d) If any Controlling Person of a Passive NFFE is a U.S. citizen or 

resident, the account shall be treated as a U.S. Reportable 

Account. 

30
E. Timing of Review and Additional Procedures Applicable to 

Preexisting Entity Accounts. 

1. Review of Preexisting Entity Accounts with an account balance or 

value that exceeds $250,000 as of June 30, 2014 must be completed by 

June 30, 2016. 

2. Review of Preexisting Entity Accounts with an account balance or 

value that does not exceed $250,000 as of June 30, 2014, but exceeds 

$1,000,000 as of December 31 of 2015 or any subsequent year, must be 

completed within six months after the last day of the calendar year in 

which the account balance or value exceeds $1,000,000. 

3. If there is a change of circumstances with respect to a Preexisting 

Entity Account that causes the Reporting New Zealand Financial 

Institution to know, or have reason to know, that the self-certification 

or other documentation associated with an account is incorrect or 

unreliable, the Reporting New Zealand Financial Institution must 

redetermine the status of the account in accordance with the procedures 

set forth in paragraph D of this section. 

V. New Entity Accounts. The following rules and procedures apply for purposes of 

identifying U.S. Reportable Accounts and accounts held by Nonparticipating Financial 

Institutions among Financial Accounts held by Entities and opened on or after July 1, 2014 

("New Entity Accounts"). 

A. Entity Accounts Not Required to Be Reviewed, Identified or 

Reoorted. Unless the Reporting New Zealand Financial Institution elects 

otherwise, either with respect to all New Entity Accounts or, separately, with 

respect to any clearly identified group of such accounts, where the 

implementing rules in New Zealand provide for such election, a credit card 

account or a revolving credit facility treated as a New Entity Account is not 

required to be reviewed, identified, or reported, provided that the Reporting 

New Zealand Financial Institution maintaining such account implements 

policies and procedures to prevent an account balance owed to the Account 

Holder that exceeds $50,000. 

B. Other New Entity Accounts. With respect to New Entity Accounts 

not described in paragraph A of this section, the Reporting New Zealand 

Financial Institution must determine whether the Account Holder is: (i) a 

Specified U.S. Person; (ii) a New Zealand Financial Institution or other 

Partner Jurisdiction Financial Institution; (iii) a participating FFI, a deemedcompliant FFI, or an exempt beneficial owner, as those terms are defined in 

relevant U.S. Treasury Regulations; or (iv) an Active NFFE or Passive NFFE. 

1. Subject to subparagraph B(2) of this section, a Reporting New Zealand 

Financial Institution may determine that the Account Holder is an 

Active NFFE, a New Zealand Financial Institution, or other Partner 

Jurisdiction Financial Institution if the Reporting New Zealand 

31
Financial Institution reasonably determines that the Account Holder has 

such status on the basis of the Account Holder's Global Intermediary 

Identification Number or other information that is publicly available or 

in the possession of the Reporting New Zealand Financial Institution, 

as applicable. 

2. If the Account Holder is a New Zealand Financial Institution or other 

Partner Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution, then the account is not a U.S. 

Reportable Account, but payments to the Account Holder must be 

reported as contemplated in subparagraph 1 (b) of Article 4 of the 

Agreement. 

3. In all other cases, a Reporting New Zealand Financial Institution must 

obtain a self-certification from the Account Holder to establish the 

Account Holder's status. Based on the self-certification, the following 

rules apply: 

a) If the Account Holder is a Specified U.S. Person, the Reporting 

New Zealand Financial Institution must treat the account as a 

U.S. Reportable Account. 

b) If the Account Holder is a Passive NFFE, the Reporting New 

Zealand Financial Institution must identify the Controlling 

Persons as determined under AMUKYC Procedures, and must 

determine whether any such person is a U.S. citizen or resident 

on the basis of a self-certification from the Account Holder or 

such person. If any such person is a U.S. citizen or resident, the 

Reporting New Zealand Financial Institution must treat the 

account as a U.S. Reportable Account. 

c) If the Account Holder is: (i) a U.S. Person that is not a 

Specified U.S. Person; (ii) subject to subparagraph B(3)(d) of 

this section, a New Zealand Financial Institution or other 

Partner Jurisdiction Financial Institution; (iii) a participating 

FFI, a deemed-compliant FFI, or an exempt beneficial owner, as 

those terms are defined in relevant U.S. Treasury Regulations; 

(iv) an Active NFFE; or (v) a Passive NFFE none of the 

Controlling Persons of which is a U.S. citizen or resident, then 

the account is not a U.S. Reportable Account, and no reporting 

is required with respect to the account. 

d) If the Account Holder is a Nonparticipating Financial Institution 

(including a New Zealand Financial Institution or other Partner 

Jurisdiction Financial Institution treated by the IRS as a 

Nonparticipating Financial Institution), then the account is not a 

U.S. Reportable Account, but payments to the Account Holder 

must be reported as contemplated in subparagraph l(b) of 

Article 4 of the Agreement. 

32
VI. Special Rules and Definitions. The following additional rules and definitions apply 

in implementing the due diligence procedures described above: 

A. Reliance on Self-Certifications and Documentary Evidence. A 

Reporting New Zealand Financial Institution may not rely on a selfcertification or documentary evidence if the Reporting New Zealand Financial 

Institution knows or has reason to know that the self-certification or 

documentary evidence is incorrect or unreliable. 

B. Definitions. The following definitions apply for purposes of this 

Annex I. 

1. AMUKYC Procedures. "AMUKYC Procedures" means the 

customer due diligence procedures of a Reporting New Zealand 

Financial Institution pursuant to the anti-money laundering or similar 

requirements of New Zealand to which such Reporting New Zealand 

Financial Institution is subject 

2. ~· An "NFFE" means any Non-U.S. Entity that is not an FFI as 

defined in relevant U.S. Treasury Regulations or is an Entity described 

in subparagraph B(4)G) of this section, and also includes any Non-U.S. 

Entity that is established in New Zealand or another Partner 

Jurisdiction and that is not a Financial Institution. 

3. Passive NFFE. A "Passive NFFE" means any NFFE that is not (i) an 

Active NFFE, or (ii) a withholding foreign partnership or withholding 

foreign trust pursuant to relevant U.S. Treasury Regulations. 

4. Active NFFE. An "Active NFFE" means any NFFE that meets any of 

the following criteria: 

a) Less than 50 percent of the NFFE's gross income for the preceding 

calendar year or other appropriate reporting period is passive 

income and less than 50 percent of the assets held by the NFFE 

during the preceding calendar year or other appropriate reporting 

period are assets that produce or are held for the production of 

passive income; 

b) The stock of the NFFE is regularly traded on an established 

securities market or the NFFE is a Related Entity of an Entity the 

stock of which is regularly traded on an established securities 

market; 

c) The NFFE is organized in a U.S. Territory and all of the owners of 

the payee are bona fide residents of that U.S. Territory; 

d) The NFFE is a governrnent (other than the U.S. Government), a 

political subdivision of such government (which, for the avoidance 

of doubt, includes a state, province, county, region or 

municipality), or a public body performing a function of such 

33
government or a political subdivision thereof, a government of a 

U.S. Territory, an international organization, a non-U.S. central 

bank of issue, or an Entity wholly owned by one or more of the 

foregoing; 

e) Substantially all of the activities of the NFFE consist of holding (in 

whole or in part) the outstanding stock of, or providing financing 

and services to, one or more subsidiaries that engage in trades or 

businesses other than the business of a Financial Institution, except 

that an NFFE shall not qualify for this status if the NFFE functions 

(or holds itself out) as an investment fund, such as a private equity 

fund, venture capital fund, leveraged buyout fund, or any 

investment vehicle whose purpose is to acquire or fund companies 

and then hold interests in those companies as capital assets for 

investment purposes; 

t) The NFFE is not yet operating a business and has no prior 

operating history, but is investing capital into assets with the intent 

to operate a business other than that of a Financial Institution, 

provided that the NFFE shall not qualify for this exception after the 

date that is 24 months after the date of the initial organization of 

theNFFE; 

g) The NFFE was not a Financial Institution in the past five years, and 

is in the process of liquidating its assets or is reorganizing with the 

intent to continue or recommence operations in a business other 

than that of a Financial Institution; 

h) The NFFE primarily engages in financing and hedging transactions 

with or for Related Entities that are not Financial Institutions, and 

does not provide financing or hedging services to any Entity that is 

not a Related Entity, provided that the group of any such Related 

Entities is primarily engaged in a business other than that of a 

Financial Institution; 

i) The NFFE is an "excepted NFFE" as described in relevant U.S. 

Treasury Regulations; or 

j) The NFFE meets all of the following requirements: 

i. It is established and operated in its jurisdiction of residence 

exclusively for religious, charitable, scientific, artistic, 

cultural, athletic, or educational purposes; or it is established 

and operated in its jurisdiction of residence and it is a 

professional organization, business league, chamber of 

commerce, labor organization, agricultural or horticultural 

organization, civic league or an organization operated 

exclusively for the promotion of social welfare; 

ii. It is exempt from income tax in its jurisdiction of residence; 

34
iii. It has no shareholders or members who have a proprietary or 

beneficial interest in its income or assets; 

iv. The applicable laws of the NFFE's jurisdiction of residence 

or the NFFE's formation documents do not permit any 

income or assets of the NFFE to be distributed to, or applied 

for the benefit of, a private person or non-charitable Entity 

other than pursuant to the conduct of the NFFE' s charitable 

activities, or as payment of reasonable compensation for 

services rendered, or as payment representing the fair market 

value of property which the NFFE has purchased; and 

v. The applicable laws of the NFFE's jurisdiction of residence 

or the NFFE's formation documents require that, upon the 

NFFE's liquidation or dissolution, all of its assets be 

distributed to a governmental entity or other non-profit 

organization, or escheat to the government of the NFFE' s 

jurisdiction of residence or any political subdivision thereof. 

5. Preexisting Account. A "Preexisting Account" means a Financial 

Account maintained by a Reporting Financial Institution as of June 30, 

2014. 

C. Account Balance Aggregation and Currencv Translation Rules. 

1. Aggregation of Individual Accounts. For purposes of determining 

the aggregate balance or value of Financial Accounts held by an 

individual, a Reporting New Zealand Financial Institution is required 

to aggregate all Financial Accounts maintained by the Reporting New 

Zealand Financial Institution, or by a Related Entity, but only to the 

extent that the Reporting New Zealand Financial Institution's 

computerized systems link the Financial Accounts by reference to a 

data element such as client number or taxpayer identification number, 

and allow account balances or values to be aggregated. Each holder of 

a jointly held Financial Account shall be attributed the entire balance 

or value of the jointly held Financial Account for purposes of applying 

the aggregation requirements described in this paragraph 1. 

2. Aggregation of Entity Accounts. For purposes of determining the 

aggregate balance or value of Financial Accounts held by an Entity, a 

Reporting New Zealand Financial Institution is required to take into 

account all Financial Accounts that are maintained by the Reporting 

New Zealand Financial Institution, or by a Related Entity, but only to 

the extent that the Reporting New Zealand Financial Institution's 

computerized systems link the Financial Accounts by reference to a 

data element such as client number or taxpayer identification number, 

and allow account balances or values to be aggregated. 

3. Special Aggregation Rule Applicable to Relationship Managers. 

For purposes of determining the aggregate balance or value of 

Financial Accounts held by a person to determine whether a Financial 

35
Account is a High Value Account, a Reporting New Zealand Financial 

Institution is also required, in the case of any Financial Accounts that a 

relationship manager knows, or has reason to know, are directly or 

indirectly owned, controlled, or established (other than in a fiduciary 

capacity) by the same person, to aggregate all such accounts. 

4. Currency Translation Rule. For purposes of determining the balance 

or value of Financial Accounts denominated in a currency other than 

the U.S. dollar, a Reporting New Zealand Financial Institution must 

convert the U.S. dollar threshold amounts described in this Annex I 

into such currency using a published spot rate determined as of the last 

day of the calendar year preceding the year in which the Reporting 

New Zealand Financial Institution is determining the balance or value. 

D. Documentary Evidence. For purposes of this Annex I, acceptable 

documentary evidence includes any of the following: 

1. A certificate of residence issued by an authorized government body 

(for example, a government or agency thereof, or a municipality) of the 

jurisdiction in which the payee claims to be a resident. 

2. With respect to an individual, any valid identification issued by an 

authorized government body (for example, a government or agency 

thereof, or a municipality), that includes the individual's name and is 

typically used for identification purposes. 

3. With respect to an Entity, any official documentation issued by an 

authorized government body (for example, a government or agency 

thereof, or a municipality) that includes the name of the Entity and 

either the address of its principal office in the jurisdiction (or U.S. 

Territory) in which it claims to be a resident or the jurisdiction (or U.S. 

Territory) in which the Entity was incorporated or organized. 

4. With respect to a Financial Account maintained in a jurisdiction with 

anti-money laundering rules that have been approved by the IRS in 

connection with a QI agreement (as described in relevant U.S. Treasury 

Regulations), any of the documents, other than a Form W-8 or W-9, 

referenced in the jurisdiction's attachment to the QI agreement for 

identifying individuals or Entities. 

5. Any financial statement, third-party credit report, bankruptcy filing, or 

U.S. Securities and Exchange Commission report. 

E. Alternative Procedures for Financial Accounts Held by Individual 

Beneficiaries of a Cash Value Insurance Contract. A Reporting New Zealand 

Financial Institution may presume that an individual beneficiary (other than the 

owner) of a Cash Value Insurance Contract receiving a death benefit is not a Specified 

U.S. Person and may treat such Financial Account as other than a U.S. Reportable 

Account unless the Reporting New Zealand Financial Institution has actual 

knowledge, or reason to know, that the beneficiary is a Specified U.S. Person. A 

36
Reporting New Zealand Financial Institution has reason to know that a beneficiary of 

a Cash Value Insurance Contract is a Specified U.S. Person if the information 

collected by the Reporting New Zealand Financial Institution and associated with the 

beneficiary contains U.S. indicia as described in subparagraph (B)(l) of section II of 

this Annex I. If a Reporting New Zealand Financial Institution has actual knowledge, 

or reason to know, that the beneficiary is a Specified U.S. Person, the Reporting New 

Zealand Financial Institution must follow the procedures in subparagraph B(3) of 

section II of this Annex I. 

F. Reliance on Third Parties. Regardless of whether an election is made under 

paragraph C of section I of this Annex I, New Zealand may permit Reporting New 

Zealand Financial Institutions to rely on due diligence procedures performed by third 

parties, to the extent provided in relevant U.S. Treasury Regulations. 

37
ANNEX II 

NON-REPORTING NEW ZEALAND FINANCIAL INSTITUTIONS AND 

ACCOUNTS 

General 

The following Entities shall be treated as exempt beneficial owners or deemed-compliant 

FFis, as the case may be, and the following accounts are excluded from the definition of 

Financial Accounts. 

I. Exempt Beneficial Owners other than Funds. 

The following Entities shall be treated as Non-Reporting New Zealand Financial Institutions 

and as exempt beneficial owners for purposes of sections 1471 and 1472 of the U.S. Internal 

Revenue Code, other than with respect to a payment that is derived from an obligation held in 

connection with a commercial financial activity of a type engaged in by a Specified Insurance 

Company, Custodial Institution, or Depository Institution. 

A. Governmental Entities. 

The government of New Zealand, any political subdivision of New Zealand (which, 

for the avoidance of doubt, includes a state, province, county, region, or 

municipality), or any wholly owned agency or instrumentality of New Zealand or any 

one or more of the foregoing (each, a "New Zealand Governmental Entity"). This 

category is comprised of the integral parts, controlled entities, and political 

subdivisions of New Zealand. 

l. An integral part of New Zealand means any person, organization, agency, bureau, 

fund, instrumentality, or other body, however designated, that constitutes a 

governing authority of New Zealand. The net earnings of the governing authority 

must be credited to its own account or to other accounts of New Zealand, with no 

portion inuring to the benefit of any private person. An integral part does not 

include any individual who is a sovereign, official, or administrator acting in a 

private or personal capacity. 

2. A controlled entity means an Entity that is separate in form from New Zealand or 

that otherwise constitutes a separate juridical entity, provided that: 

a) The Entity is wholly owned and controlled by one or more New Zealand 

Governmental Entities directly or through one or more controlled entities; 

b) The Entity's net earnings are credited to its own account or to the accounts of 

one or more New Zealand Governmental Entities, with no portion of its 

income inuring to the benefit of any private person; and 

c) The Entity's assets vest in one or more New Zealand Governmental Entities 

upon dissolution. 

38
3. Income does not inure to the benefit of private persons if such persons are the 

intended beneficiaries of a governmental program, and the program activities are 

performed for the general public with respect to the common welfare or relate to 

the administration of some phase of government. Notwithstanding the foregoing, 

however, income is considered to inure to the benefit of private persons if the 

income is derived from the use of a governmental entity to conduct a commercial 

business, such as a commercial banking business, that provides financial services 

to private persons. 

4. For the avoidance of doubt, the following shall be treated as Non-Reporting New 

Zealand Financial Institutions and as exempt beneficial owners for purposes of 

sections 1471 and 1472 of the U.S. Internal Revenue Code: 

a) The New Zealand Superannuation Fund; 

b) The Guardians of New Zealand Superannuation; 

c) The Accident Compensation Corporation; 

d) The Earthquake Commission; 

e) The Maori Trustee; 

f) New Zealand Local Government Funding Agency Limited; 

g) The Reserve Bank of New Zealand as per section 5, and all branches and 

agencies as per section 6, of the Reserve Bank of New Zealand Act 1989. 

B. International Organization. Any international organization or wholly owned 

agency or instrumentality thereof. This category includes any intergovernmental 

organization (including a supranational organization) (1) that is comprised primarily 

of non-U.S. governments; (2) that has in effect a headquarters agreement with New 

Zealand; and (3) the income of which does not inure to the benefit of private persons. 

C. MAori Authorities. Maori Authorities as defined in section HF 1(1) of the Income 

Tax Act 2007. 

II. Funds that Qualify as Exempt Beneficial Owners. 

The following Entities shall be treated as Non-Reporting New Zealand Financial 

Institutions and as exempt beneficial owners for purposes of sections 1471 and 1472 of 

the U.S. Internal Revenue Code. 

A. Treaty-Qualified Retirement Fund. Any pension fund established in New Zealand 

and described in Article 3(1)(1) (General Definitions) of the Convention, provided that 

the pension fund is entitled to benefits under the Convention on income that it derives 

from sources within the United States (or would be entitled to such benefits if it 

derived any such income) as a resident of New Zealand that satisfies any applicable 

limitation on benefits requirement. 

39
- 

B. Broad Participation Retirement Fund. A fund established in New Zealand to 

provide retirement, disability, or death benefits, or any combination fuereof, to 

beneficiaries that are current or former employees (or persons designated by such 

employees) of one or more employers in consideration for services rendered, provided 

that the fund: 

1. Does not have a single beneficiary with a right to more than five percent of the 

fund's assets; 

2. Is subject to government regulation and provides annual information reporting 

about its beneficiaries to the relevant tax authorities in New Zealand; and 

3. Satisfies at least one of the following requirements: 

a) The fund is generally exempt from tax in New Zealand on investment income 

under the laws of New Zealand due to its status as a retirement· or pension 

plan; 

b) The fund receives at least 50 percent of its total contributions (other than 

transfers of assets from other plans described in paragraphs A through D of 

this section or from retirement and pension accounts described in 

subparagraph B(l) of section V of this Annex II) from the sponsoring 

employers; 

c) Distributions or withdrawals from the fund are allowed only upon the 

occurrence of specified events related to retirement, disability, or death 

(except rollover distributions to other retirement funds described in paragraphs 

A through D of this section or retirement and pension accounts described in 

subparagraph B(l) of section V of this Annex II), or penalties apply to 

distributions or withdrawals made before such specified events; or 

d) Contributions (other than certain permitted make-up contributions) by 

employees to the fund are limited by reference to earned income of the 

employee or may not exceed $50,000 annually, applying the rules set forth in 

Annex I for account aggregation and currency translation. 

C. Narrow Participation Retirement Fund. A fund established in New Zealand to 

provide retirement, disability, or death benefits to beneficiaries that are current or 

former employees (or persons designated by such employees) of one or more 

employers in consideration for services rendered, provided that: 

1. The fund has fewer than 50 participants; 

2. The fund is sponsored by one or more employers that are not Investment Entities 

or Passive NFFEs; 

3. The employee and employer contributions to the fund (other than transfers of 

assets from treaty-qualified retirement funds described in paragraph A of this 

section or retirement and pension accounts described in subparagraph B(l) of 

40
section V of this Annex IO are limited by reference to earned income and 

compensation of the employee, respectively; 

4. Participants that are not residents of New Zealand are not entitled to more than 20 

percent of the fund's assets; and 

5. The fund is subject to government regulation and provides annual information 

reporting about its beneficiaries to the relevant tax authorities in New Zealand. 

D. Pension Fund of an Exempt Beneficial Owner. A fund established in New Zealand 

by an exempt beneficial owner to provide retirement, disability, or death benefits to 

beneficiaries or participants that are current or former employees of the exempt 

beneficial owner (or persons designated by such employees), or that are not current or 

former employees, if the benefits provided to such beneficiaries or participants are in 

consideration of personal services performed for the exempt beneficial owner. 

E. Investment Entity Wholly Owned by Exempt Beneficial Owners. An Entity that 

is a New Zealand Financial Institution solely because it is an Investment Entity, 

provided that each direct holder of an Equity Interest in the Entity is an exempt 

beneficial owner, and each direct holder of a debt interest in such Entity is either a 

Depository Institution (with respect to a loan made to such Entity) or an exempt 

beneficial owner. 

ill. Small or Limited Scope Financial Institutions that Qualify as Deemed-Compliant 

!lJ§. 

The following Financial Institutions are Non-Reporting New Zealand Financial 

Institutions that shall be treated as deemed-compliant FFis for purposes of section 

1471 of the U.S. Internal Revenue Code. 

A. Financial Institutions with a Local Client Base. 

A New Zealand Financial Institution satisfying the following requirements: 

1. The Financial Institution must be licensed or regulated as a financial institution 

under the laws of New Zealand; 

2. The Financial Institution must have no fixed place of business outside of New 

Zealand. For this purpose, a fixed place of business does not include a location 

that is not advertised to the public and from which the Financial Institution 

performs solely administrative support functions; 

3. The Financial Institution must not solicit customers or Account Holders outside of 

New Zealand. For this purpose, a Financial Institution shall not be considered to 

have solicited customers or Account Holders outside of New Zealand merely 

because the Financial Institution (a) operates a website, provided that the website 

does not specifically indicate that the Financial Institution provides Financial 

Accounts or services to non-residents, and does not otherwise target or solicit U.S. 

customers or Account Holders, or (b) advertises in print media or on a radio or 

television station that is distributed or aired primarily within New Zealand but is 

41
also incidentally distributed or aired in other countries, provided that the 

advertisement does not specifically indicate that the Financial Institution provides 

Financial Accounts or services to non-residents, and does not otherwise target or 

solicit U.S. customers or Account Holders; 

4. The Financial Institution must be required under the laws of New Zealand to 

identify resident Account Holders for the purposes of either information reporting 

or withholding of tax with respect to Financial Accounts held by residents or for 

the purposes of satisfying New Zealand's anti-money laundering due diligence 

requirements; 

5. At least 98 percent of the Financial Accounts by value maintained by the 

Financial Institution, as of the last day of the preceding calendar year or other 

appropriate reporting period, must be held by residents (including residents that 

are Entities) of New Zealand or Australia; 

6. Beginning on or before July 1, 2014, the Financial Institution must have policies 

and procedures, consistent with those set forth in Annex I, to prevent the Financial 

Institution from providing a Financial Account to any Nonparticipating Financial 

Institution and to monitor whether the Financial Institution opens or maintains a 

Financial Account for 

(i) any Specified U.S. Person who is not a resident of New Zealand (including a 

U.S. Person that was a resident of New Zealand when the account was opened 

but subsequently ceases to be a resident of New Zealand), or 

(ii) any Passive NFFE with one or more Controlling Persons who are U.S. 

residents or U.S. citizens who are not residents of New Zealand; 

7. Such policies and procedures must provide that if any Financial Account held by a 

Specified U.S. Person who is not a resident of New Zealand or by a Passive NFFE 

with Controlling Persons who are U.S. residents or U.S. citizens who are not 

residents of New Zealand is identified, the Financial Institution must report such 

Financial Account as would be required if the Financial Institution were a 

Reporting New Zealand Financial Institution (including by following the 

applicable registration requirements on the IRS FATCA registration website) or 

close such Financial Account; 

8. With respect to a Preexisting Account held by an individual who is not a resident 

of New Zealand or by an Entity, the Financial Institution must review those 

Preexisting Accounts in accordance with the procedures set forth in Annex I 

applicable to Preexisting Accounts to identify any U.S. Reportable Account or 

Financial Account held by a Nonparticipating Financial Institution, and must 

report such Financial Account as would be required if the Financial Institution 

were a Reporting New Zealand Financial Institution (including by following the 

applicable registration requirements on the IRS FATCA registration website) or 

close such Financial Account; 

9. Each Related Entity of the Financial Institution that is a Financial Institution must 

be incorporated or organized in New Zealand and, with the exception of any 

42
Related Entity that is a retirement fund described in paragraphs A through D of 

section II of this Annex II, satisfy the requirements set forth in this paragraph A; 

and 

10. The Financial Institution must not have policies or practices that discriminate 

against opening or maintaining Financial Accounts for individuals who are 

Specified U.S. Persons and residents of New Zealand. 

B. Certain Non-Registering Local Banks. 

A New Zealand Financial Institution satisfying the following requirements: 

1. The Financial Institution operates solely as (and is licensed or regulated under the 

laws of New Zealand as) (a) a bank (or a Financial Institution offering comparable 

financial services) or (b) a credit union or similar cooperative credit organization 

that is operated without profit; 

2. The Financial Institution's business consists primarily of receiving deposits from 

and making loans to, with respect to a bank, unrelated retail customers and, with 

respect to a credit union or similar cooperative credit organization, members, 

provided that no member has a greater than five percent interest in such credit 

union or cooperative credit organization; 

3. The Financial Institution satisfies the requirements set forth in subparagraphs A(2) 

and A(3) of this section provided that, in addition to the limitations on the website 

described in subparagraph A(3) of this section, the website does not permit the 

opening of a Financial Account; 

4. The Financial Institution does not have more than $175 million (as of the last day 

of the preceding calendar year or other appropriate reporting period) in assets on 

its balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $500 million (as of the last day of the preceding 

calendar year or other appropriate reporting period) in total assets on their 

consolidated or combined balance sheets; and 

5. Any Related Entity must be incorporated or organized in New Zealand, and any 

Related Entity that is a Financial Institution, with the exception of any Related 

Entity that is a retirement fund described in paragraphs A through D of section II 

of this Annex II or a Financial Institution with only low-value accounts described 

in paragraph C of this section, must satisfy the requirements set forth in this 

paragraph B. 

C. Financial Institution with Only Low-Value Accounts. A New Zealand Financial 

Institution satisfying the following requirements: 

I. The Financial Institution is not an Investment Entity; 

2. No Financial Account maintained by the Financial Institution or any Related 

Entity has a balance or value in excess of $50,000, applying the rules set forth in 

Annex I for account aggregation and currency translation; and 

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3. The Financial Institution does not have more than $50 million in assets on its 

balance sheet, and the Financial Institution and any Related Entities, taken 

together, do not have more than $50 million in total assets on their consolidated or 

combined balance sheets. 

D. Qualified Credit Card Issuer. A New Zealand Financial Institution satisfying the 

following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an issuer of 

credit cards that accepts deposits only when a customer makes a payment in 

excess of a balance due with respect to the card and the overpayment is not 

immediately returned to the customer; and 

2. Beginning on or before July 1, 2014, the Financial Institution implements policies 

and procedures to either prevent a customer deposit in excess of $50,000, or to 

ensure that any customer deposit in excess of $50,000, in each case applying the 

rules set forth in Annex I for account aggregation and currency translation, is 

refunded to the customer within 60 days. For this purpose, a customer deposit 

does not refer to credit balances to the extent of disputed charges but does include 

credit balances resulting from merchandise returns. 

IV. Investment Entities that Qualify as Deemed-Compliant FFis and Other Special 

~-

The Financial Institutions described in paragraphs A through E of this section are 

Non-Reporting New Zealand Financial Institutions that shall be treated as deemedcompliant FFis for purposes of section 1471 of the U.S. Internal Revenue Code. In 

addition, paragraph F of this section provides special rules applicable to an 

Investment Entity. 

A. Trustee-Documented Trust. A trust established under the laws of New Zealand to 

the extent that the trustee of the trust is a Reporting U.S. Financial Institution, 

Reporting Model 1 FFI, or Participating FFI and reports all information required to be 

reported pursuant to the Agreement with respect to all U.S. Reportable Accounts of 

the trust. 

B. Sponsored Investment Entity and Controlled Foreign Corporation. A Financial 

Institution described in subparagraph B(l) or B(2) of this section having a sponsoring 

entity that complies with the requirements of subparagraph B(3) of this section. 

1. A Financial Institution is a sponsored investment entity if (a) it is an Investment 

Entity established in New Zealand that is not a qualified intermediary, 

withholding foreign partnership, or withholding foreign trust pursuant to relevant 

U.S. Treasury Regulations; and (b) an Entity has agreed with the Financial 

Institution to act as a sponsoring entity for the Financial Institution. 

44
2. A Financial Institution is a sponsored controlled foreign corporation if (a) the 

Financial Institution is a controlled foreign corporation' organized under the laws 

of New Zealand that is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; (b) the Financial Institution is wholly owned, directly or indirectly, 

by a Reporting U.S. Financial Institution that agrees to act, or requires an affiliate 

of the Financial Institution to act, as a sponsoring entity for the Financial 

Institution; and (c) the Financial Institution shares a common electronic account 

system with the sponsoring entity that enables the sponsoring entity to identify all 

Account Holders and payees of the Financial Institution and to access all account 

and customer information maintained by the Financial Institution including, but 

not limited to, customer identification information, customer documentation, 

account balance, and all payments made to the Account Holder or payee. 

3. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity is authorized to act on behalf of the Financial Institution 

(such as a fund manager, trustee, corporate director, or managing partner) to 

fulfill applicable registration requirements on the IRS FA TCA registration 

website; 

b) The sponsoring entity has registered as a sponsoring entity with the IRS on the 

IRS FATCA registration website; 

c) If the sponsoring entity identifies any U.S. Reportable Accounts with respect 

to the Financial Institution, the sponsoring entity registers the Financial 

Institution pursuant to applicable registration requirements on the IRS FA TCA 

registration website on or before the later of December 31, 2015 and the date 

that is 90 days after such a U.S. Reportable Account is first identified; 

d) The sponsoring entity agrees to perform, on behalf of the Financial Institution, 

all due diligence, withholding, reporting, and other requirements that the 

Financial Institution would have been required to perform if it were a 

Reporting New Zealand Financial Institution; 

e) The sponsoring entity identifies the Financial Institution and includes the 

identifying number of the Financial Institution (obtained by following 

applicable registration requirements on the IRS FA TCA registration website) 

in all reporting completed on the Financial Institution's behalf; and 

f) The sponsoring entity has not had its status as a sponsor revoked. 

1 A "controlled foreign corporation" means any foreign corporation if more than 50 percent of the total 

combined voting power of all classes of stock of such corporation entitled to vote, or the total value of the 

stock of such corporation, is owned, or is considered as owned, by "United States shareholders" on any day 

during the taxable year of such foreign corporation. The term a "United States shareholder" means, with 

respect to any foreign corporation, a United States person who owns, or is considered as owning, 10 percent 

or more of the total combined voting power of all classes of stock entitled to vote of such foreign corporation. 

45
C. Sponsored, Closely Held Investment Vehicle. A New Zealand Financial Institution 

satisfying the following requirements: 

1. The Financial Institution is a Financial Institution solely because it is an 

Investment Entity and is not a qualified intermediary, withholding foreign 

partnership, or withholding foreign trust pursuant to relevant U.S. Treasury 

Regulations; 

2. The sponsoring entity is a Reporting U.S. Financial Institution, Reporting Model 1 

FFI, or Participating FFI, is authorized to act on behalf of the Financial Institution 

(such as a professional manager, trustee, or managing partner), and agrees to 

perform, on behalf of the Financial Institution, all due diligence, withholding, 

reporting, and other requirements that the Financial Institution would have been 

required to perform if it were a Reporting New Zealand Financial Institution; 

3. The Financial Institution does not hold itself out as an investment vehicle for 

unrelated parties; 

4. Twenty or fewer individuals own all of the debt interests and Equity Interests in 

the Financial Institution (disregarding debt interests owned by Participating FFis 

and deemed-compliant FFis and Equity Interests owned by an Entity if that Entity 

owns 100 percent of the Equity Interests in the Financial Institution and is itself a 

sponsored Financial Institution described in this paragraph C); and 

5. The sponsoring entity complies with the following requirements: 

a) The sponsoring entity has registered as a sponsoring entity pursuant to 

applicable registration requirements on the IRS FA TCA registration website; 

b) The sponsoring entity agrees to perform, on behalf of the Financial Institution, 

all due diligence, withholding, reporting, and other requirements that the 

Financial Institution would have been required to perform if it were a 

Reporting New Zealand Financial Institution and retains documentation 

collected with respect to the Financial Institution for a period of six years; 

c) The sponsoring entity identifies the Financial Institution in all reporting 

completed on the Financial Institution's behalf; and 

d) The sponsoring entity has not had its status as a sponsor revoked. 

D. Investment Advisors and Investment Managers. An Investment Entity established 

in New Zealand that is a Financial Institution solely because it (1) renders investment 

advice to, and acts on behalf of, or (2) manages portfolios for, and acts on behalf of, a 

customer for the purposes of investing, managing, or administering funds deposited in 

the name of the customer with a Financial Institution other than a Nonparticipating 

Financial Institution. 

E. Collective Investment Vehicle. An Investment Entity established in New Zealand 

that is regulated as a collective investment vehicle, provided that all of the interests in 

the collective investment vehicle (including debt interests in excess of $50,000) are 

46
held by or through one or more exempt beneficial owners, Active NFFEs described in 

subparagraph B(4) of section VI of Annex I, U.S. Persons that are not Specified U.S. 

Persons, or Financial Institutions that are not Nonparticipating Financial Institutions. 

F. Special Rules. The following rules apply to an Investment Entity: 

1. With respect to interests in an Investment Entity that is a collective investment 

vehicle described in paragraph E of this section, the reporting obligations of any 

Investment Entity (other than a Financial Institution through which interests in the 

collective investment vehicle are held) shall be deemed fulfilled. 

2. With respect to interests in: 

a) An Investment Entity established in a Partner Jurisdiction that is regulated as a 

collective investment vehicle, all of the interests in which (including debt 

interests in excess of $50,000) are held by or through one or more exempt 

beneficial owners, Active NFFEs described in subparagraph B(4) of section F 

of Annex I, U.S. Persons that are not Specified U.S. Persons, or Financial 

Institutions that are not Nonparticipating Financial Institutions; or 

b) An Investment Entity that is a qualified collective investment vehicle under 

relevant U.S. Treasury Regulations; 

the reporting obligations of any Investment Entity that is a New Zealand 

Financial Institution (other than a Financial Institution through which interests 

in the collective investment vehicle are held) shall be deemed fulfilled. 

3. With respect to interests in an Investment Entity established in New Zealand that 

is not described in paragraph E or subparagraph F(2) of this section, consistent 

with paragraph 3 of Article 5 of the Agreement, the reporting obligations of all 

other Investment Entities with respect to such interests shall be deemed fulfilled if 

the information required to be reported by the first-mentioned Investment Entity 

pursuant to the Agreement with respect to such interests is reported by such 

Investment Entity or another person. 

V. Accounts Excluded from Financial Accounts. 

The following accounts are excluded from the definition of Financial Accounts and 

therefore shall not be treated as U.S. Reportable Accounts. 

A. Certain Retirement Accounts or Products. 

Membership of the Whai Rawa approved retirement savings scheme operated by 

Te Riinanga o Ngai Tahu. 

B. Certain Savings Accounts. 

47
1. Retirement and Pension Account A retirement or pension account maintained in 

New Zealand that satisfies the following requirements under the laws of New 

Zealand. 

a) The account is subject to regulation as a personal retirement account or is part 

of a registered or regulated retirement or pension plan for the provision of 

retirement or pension benefits (including disability or death benefits); 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of New Zealand are deductible or 

excluded from the gross income of the account holder or taxed at a reduced 

rate, or taxation of investment income from the account is deferred or taxed at 

a reduced rate); 

c) Annual information reporting is required to the tax authorities in New Zealand 

with respect to the account; 

d) Withdrawals are conditioned on reaching a specified retirement age, disability, 

or death, or penalties apply to withdrawals made before such specified events; 

and 

e) Either (i) annual contributions are limited to $50,000 or less, or (ii) there is a 

maximum lifetime contribution limit to the account of $1,000,000 or less, in 

each case applying the rules set forth in Annex I for account aggregation and 

currency translation. 

2. Non-Retirement Savini!S Accounts. An account maintained in New Zealand 

(other than an insurance or Annuity Contract) that satisfies the following 

requirements under the laws of New Zealand. 

a) The account is subject to regulation as a savings vehicle for purposes other 

than for retirement; 

b) The account is tax-favored (i.e., contributions to the account that would 

otherwise be subject to tax under the laws of New Zealand are deductible or 

excluded from the gross income of the account holder or taxed at a reduced 

rate, or taxation of investment income from the account is deferred or taxed at 

a reduced rate); 

c) Withdrawals are conditioned on meeting specific criteria related to the purpose 

of the savings account (for example, the provision of educational or medical 

benefits), or penalties apply to withdrawals made before such criteria are met; 

and 

d) Annual contributions are limited to $50,000 or less, applying the rules set 

forth in Annex I for account aggregation and currency translation. 

C. Certain Term Life Insurance Contracts. A life insurance contract maintained in 

New Zealand with a coverage period that will end before the insured individual 

attains age 90, provided that the contract satisfies the following requirements: 

48
1. Periodic premiums, which do not decrease over time, are payable at least annually 

during the period the contract is in existence or until the insured attains age 90, 

whichever is shorter; 

2. The contract has no contract value that any person can access (by withdrawal, 

loan, or otherwise) without terminating the contract; 

3. The amount (other than a death benefit) payable upon cancellation or termination 

of the contract cannot exceed the aggregate premiums paid for the contract, less 

the sum of mortality, morbidity, and expense charges (whether or not actually 

imposed) for the period or periods of the contract's existence and any amounts 

paid prior to the cancellation or termination of the contract; and 

4. The contract is not held by a transferee for value. 

D. Account Held By an Estate. An account maintained in New Zealand that is held 

solely by an estate if the documentation for such account includes a copy of the 

deceased's will or death certificate. 

E. Escrow Accounts. An account maintained in New Zealand established in connection 

with any of the following: 

1. Legislation, a court order or judgment. 

2. A sale, exchange, or lease of real or personal property, provided that the account 

satisfies the following requirements: 

a) The account is funded solely with a down payment, earnest money, deposit in 

an amount appropriate to secure an obligation directly related to the 

transaction, or a similar payment, or is funded with a financial asset that is 

deposited in the account in connection with the sale, exchange, or lease of the 

property; 

b) The account is established and used solely to secure the obligation of the 

purchaser to pay the purchase price for the property, the seller to pay any 

contingent liability, or the lessor or lessee to pay for any damages relating to 

the leased property as agreed under the lease; 

c) The assets of the account, including the income earned thereon, will be paid or 

otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee 

(including to satisfy such person's obligation) when the property is sold, 

exchanged, or surrendered, or the lease terminates; 

d) The account is not a margin or similar account established in connection with 

a sale or exchange of a financial asset; and 

e) The account is not associated with a credit card account. 

49
3. An obligation of a Financial Institution servicing a loan secured by real property 

to set aside a portion of a payment solely to facilitate the payment of taxes or 

insurance related to the real property at a later time. 

4. An obligation of a Financial Institution solely to facilitate the payment of taxes at 

a later time. 

F. Partner .Jurisdiction Accounts. An account maintained in New Zealand and 

excluded from the definition of Financial Account under an agreement between the 

United States and another Partner Jurisdiction to facilitate the implementation of 

FA TCA, provided that such account is subject to the same requirements and oversight 

under the laws of such other Partner Jurisdiction as if such account were established 

in that Partner Jurisdiction and maintained by a Partner Jurisdiction Financial 

Institution in that Partner Jurisdiction. 

G. Certain Other Accounts or Products. An interest in a trust established in 

accordance with section 15S(1)(c) of the Tax Administration Act 1994 by a tax 

pooling intermediary for the purposes of administering a "tax pooling account" as 

defined in section RP 17B of the Income Tax Act 2007. 

VI. Definitions. The following additional definitions shall apply to the descriptions 

above: 

A. Reporting Model 1 FFI. The term Reporting Model 1 FFI means a Financial 

Institution with respect to which a non-U.S. government or agency thereof agrees to 

obtain and exchange information pursuant to a Model 1 IGA, other than a Financial 

Institution treated as a Nonparticipating Financial Institution under the Model I IGA. 

For purposes of this definition, the term Model 1 IGA means an arrangement between 

the United States or the Treasury Department and a non-U.S. government or one or 

more agencies thereof to implement FA TCA through reporting by Financial 

Institutions to such non-U.S. government or agency thereof, followed by automatic 

exchange of such reported information with the IRS. 

B. Participating FFI. The term Participating FFI means a Financial Institution that has 

agreed to comply with the requirements of an FFI Agreement, including a Financial 

Institution described in a Model 2 IGA that has agreed to comply with the 

requirements of an FFI Agreement. The term Participating FFI also includes a 

qualified intermediary branch of a Reporting U.S. Financial Institution, unless such 

branch is a Reporting Model 1 FFI. For purposes of this definition, the term FFI 

Agreement means an agreement that sets forth the requirements for a Financial 

Institution to be treated as complying with the requirements of section 1471(b) of the 

U.S. Internal Revenue Code. In addition, for purposes of this definition, the term 

Model 2 IGA means an arrangement between the United States or the Treasury 

Department and a non-U.S. government or one or more agencies thereof to facilitate 

the implementation of FA TCA through reporting by Financial Institutions directly to 

the IRS in accordance with the requirements of an FFI Agreement, supplemented by 

the exchange of information between such non-U.S. government or agency thereof 

and the IRS. 

50