Memorandum of Understanding 

At the signing today of the 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 (hereinafter the "Agreement"), the representatives of the United States 

of America and New Zealand wish to confirm their understanding of the following: 

It is understood that organizations registered under the Charitable Trusts Act 1957 and the 

Charities Act 2005, and donee organizations as defined in the Income Tax Act 2007, would 

be treated as NFFEs that satisfy subparagraph B(4)U) of section VI of Annex I. 

It is understood that an entity established in New Zealand that (i) manages or operates an 

employee stock option or employee share purchase plan and (ii) is not otherwise a New 

Zealand Financial Institution, would be treated as an NFFE that satisfies subparagraph B(4)(i) 

of section VI of Annex I. 

It is understood that in the case of securities registered with a "designated settlement system" 

for purposes of part 5C of the Reserve Bank of New Zealand Act 1989 that are held by or 

through one or more other Financial Institutions that are not Nonparticipating Financial 

Institutions, the relevant Financial Accounts would be treated as held by such other Financial 

Institutions, and such other Financial Institutions would be responsible for any reporting 

necessary with respect to such Financial Accounts. However, in accordance with paragraph 3 

of Article 5 of the Agreement, the relevant settlement system may report on behalf of such 

other Financial Institutions. 

It is understood that for purposes of subparagraph 4(b) of paragraph A of Section I of Annex 

II, the term "Guardians of New Zealand Superannuation" includes any wholly-owned 

subsidiary of the Guardians of New Zealand authorized by statute to carry out any of the 

investment functions of the Guardians of New Zealand. 

It is understood that for the purposes of paragraph A of Section I of Annex II, the entities 

controlled by the New Zealand Government known as Southern Response and Crown Asset 

Management would be treated as Non-Reporting New Zealand Financial Institutions and as 

exempt beneficial owners for the purposes of sections 1471 and 1472 of the U.S. Internal 

Revenue Code. 

It is understood that for purposes of paragraph 1 of Article 2 (Obligations to Obtain and 

Exchange Information with Respect to Reportable Accounts), the use of the term "annually" 

is not intended to preclude the Parties from exchanging information on a more frequent basis 

than annually. 

In reference to paragraph 1 of Article 10 (Term of Agreement), the Government of the United 

States understands that the Government of New Zealand has introduced legislation that is to 

enable the Agreement to be implemented in New Zealand, with the goal of having the 

Agreement enter into force by September 30, 2015. Based on this understanding, as of the 

date of signature of the Agreement, the United States Department of the Treasury intends to 

treat each New Zealand Financial Institution, as that term is defined in the Agreement, as 

complying with, and not subject to withholding under, section 1471 of the U.S. Internal 

Revenue Code during such time as New Zealand is pursuing the necessary internal 
procedures for entry into force of the Agreement. The United States further understands that 

New Zealand's Inland Revenue intends to contact the United States Department of the 

Treasury as soon as it is aware that there might be a delay in the New Zealand internal 

approval process for entry into force of the Agreement such that New Zealand would not be 

able to provide its notification under paragraph 1 of Article 10 of the Agreement prior to 

September 30, 2015. If upon consultation with New Zealand, the United States Department of 

the Treasury receives credible assurances that such a delay is likely to be resolved in a 

reasonable period of time, the United States Department of the Treasury may decide to 

continue to apply FA TCA to New Zealand Financial Institutions in the manner described 

above as long as the United States Department of the Treasury assesses that New Zealand is 

likely to be able to send its notification under paragraph 1 of Article 10 by September 30, 

2016. It is understood that should the Agreement enter into force after September 30, 2015, 

any information that would have been reportable under the Agreement thereafter (and prior to 

its entry into force) had the Agreement been in force by September 30, 2015, is owed on the 

September 30 next following the date of entry into force. 

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Signed at lJtlliYJ~n duplicate, in the English language, this if:. day v N... , 20rl.. 

FOR THE GOVERNMENT OF 

THE UNITED STATES OF AMERICA: 

FOR THE GOVERNMENT OF 

NEW ZEALAND: 

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