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How non-residents can get an IRD number without a bank account

Tax Alert - May 2018

Now that the rules around non-residents applying for IRD numbers have been relaxed (see here for more detail), Inland Revenue have released more guidance on the information they will require in order to grant such applications.

In future, Inland Revenue will be able to provide a non-resident with an IRD number if they are satisfied with the identity and background of the taxpayer. 

  • Updated guidance on the Inland Revenue website provides that non-resident companies that do not have a New Zealand bank account will be able to obtain an IRD number by providing:
  • Certified copy of the Certificate of incorporation
  • Certified passport photo page of an executive office holder or director
  • Certified proof of residential address of an executive office holder or director
  • Certified bank account details if the company is resident in a country New Zealand has a double tax agreement (DTA) or Automatic Exchange of Information agreement (AEOI) with.
  • Stock exchange listing if listed
  • Names, addresses, tax identification numbers (TIN) of all directors
  • Names, addresses, TIN numbers of all shareholders if the company has 5 or fewer shareholders.

The first three items were already required under the old rules, so the new requirement is to provide certified bank account details from the applicants home country. However Inland Revenue hasn’t clarified how a company resident in a country that doesn’t have a DTA or AEOI with New Zealand will prove their identity.

Unincorporated entities such as trusts or joint ventures must provide:

  • Certified copy of the certificate of registration, copy of trust deed or agreement (as applies)
  • Certified Passport photo page of an executive office holder, trustee, partner, executor or owner
  • Certified bank account details if the entity is resident of a country with which New Zealand has a DTA or AEOI.
  • Proof of residential address of an executive office holder, trustee, partner, executor or owner
  • Names, addresses, TIN numbers of executive office holders, trustees, partners, executors or owners

Again, the new requirement is for certified bank account details.  In all cases documents need to be certified by a person or entity authorised to certify them under the laws of the relevant country of residence. Examples may include a government, judicial or regulatory body, a lawyer, or a notary public. A certified translation will need to be provided for any documentation that is not in English.

Inland Revenue do caveat this guidance by saying that there may be situations where Inland Revenue may require more information than outlined above, and will look at these situations individually.  Unfortunately they do not give any indication as to what situations this may include, so, as with all new policy, we will no doubt get more clarity as the new rules are tested by real-life examples. 

 

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