Foreign Account Tax Compliance Act is a US driven regulatory requirement being implemented globally, aimed at ensuring US taxpayers do not avoid paying tax on income earned outside of the US.
FATCA is a set of requirements imposed on non-US financial institutions (FIs) by the Internal Revenue Service (IRS) of the United States (US) to deter tax evasion by US tax payers (individuals and entities). The regime aims to allow the IRS to obtain information about investments held by US persons and entities outside of the US.
Frequently Asked Questions
What is FATCA?
The Foreign Account Tax Compliance Act (FATCA) requires non-US financial institutions to identify which accounts are held by US taxpayers.
Information about these accounts must be reported annually to the US Inland Revenue Service via the appropriate local tax authority such as the Inland Revenue Department (IRD).
Why was FATCA Introduced?
FATCA aims to deter tax evasion by US taxpayers who hold certain types of financial accounts outside the US but fail to declare these accounts to the US tax authorities.
What is AMP doing about it?
AMP, as a leading provider of wealth management services, takes extremely seriously its obligations to its customers and investors and in particular, requirements to comply with local and international laws. As a consequence, AMP is fully compliant by the with the requirements of FATCA.
When did it start?
The obligation to collect information about new customers’ US tax status started on 1 July 2014. Additional obligations came into effect progressively over the next three years.
What does FATCA apply to?
FATCA applies to all non-US financial institutions offering bank or deposit accounts, investment funds, custodial accounts and certain insurance accounts.
Certain products that are deemed to be low risk vehicles for tax evasion are excluded from the regime, e.g. superannuation products.
How will I know if I, or an entity I am associated with, is a US citizen or resident for US tax purposes?
The US IRS provides a broad definition of a US citizen or resident for US tax purposes (US taxpayer). It may include:
- anyone born in the US (who hasn’t renounced their citizenship);
- anyone living in the US;
- a person who has worked or is working in the US;
- US passport holder; or,
- US companies, trusts and partnerships for US tax purposes.
If you are unsure if you, or an entity with which you are associated, may be a US taxpayer, it is recommended that you seek specialist tax advice.
In addition, AMP is required to identify and report on accounts held by:
- certain companies, where individual shareholders who own, directly or indirectly, more than 25% of the company's issued capital are US citizens or resident for tax purposes;
- trusts where an individual who controls the trust or trustee or is a beneficiary is a US citizen or resident for tax purposes; and,
- partnerships which are controlled by US citizens or residents for tax purposes.
How does it affect me?
Those products impacted by FATCA will have their application forms updated with a mandatory question for all customers to answer about whether they or the investing entity are a US tax payer or has major shareholders, controlling persons or beneficiaries that are US tax payers.
- If you are not a US taxpayer, you will need to answer accordingly and there is no further impact.
- If the investing entity is not a US taxpayer and has no major shareholders, controlling persons or beneficiaries that are US taxpayers, you will need to answer accordingly and there is no further impact.
- If you are a US taxpayer or the investing entity is a US taxpayer you will need to answer accordingly and provide additional information such as your US tax or social security number, known in the US as a tax identification number (US TIN) or employer identification number (US EIN). If you don’t know your US TIN/EIN or you don’t have it at the time of application, it can be provided at a later date. If you are associated with an entity that is a non-US Financial Institution you will be required to provide either its Global Intermediary Identification Number (GIIN) or confirmation of its FATCA status. If you don’t know either its GIIN or FATCA status or you don’t have them at the time of application, they can be provided at a later date.
- If you are associated with an investing entity that is a non-US tax payer but has major shareholders, controlling persons or beneficiaries that are US tax payers you will need to provide additional information related to those tax payers such as their names, addresses and US TINs. If you don’t know the US TIN or you don’t have it at the time of application, it can be provided at a later date.
It is mandatory for you to provide us with the required information for FATCA compliance. If you do not do so and do not respond to further enquiries, AMP is obliged by law to report the account details to the local tax authority such as the ATO. Existing customer accounts will also be assessed and reported as required. . We will process
your personal information in accordance with our privacy statement and New Zealand privacy laws.
I need more information
Further information is available at:
For domestic clients:
If you have any questions about this update or have any questions about your AMP Capital investments, please contact your Account Manager or our Client Services Team on 0800 400 499, between 8.30am and 5.30pm (NZT) Monday to Friday
For international clients:
- US Internal Revenue Service
- Your local taxation office
- Your taxation adviser
If you have any questions about this update or have any questions about your AMP Capital investments, please contact us at firstname.lastname@example.org or your Account Manager.
What is CRS?
The CRS is a new set of regulations that have been developed as a single global standard for exchanging foreign tax resident information between tax authorities worldwide. The CRS is an Organisation for Economic Co-operation and Development (‘OECD’) regulation that has been enacted in New Zealand and other OECD countries’ legislation.
What happens under CRS?
All financial institutions are required to identify foreign tax residents (including those who hold investment product accounts), collect information about their tax residency and report that information to the local tax agency (the Australian Tax Office (‘ATO’) in Australia and the Inland Revenue Department (‘IRD’) in New Zealand).
Where a customer is a foreign tax resident they must provide their country of tax residency and their Tax Identification Number (‘TIN’) or select a reason for not having a TIN. For non-individuals (i.e. entities such as companies and trusts), the foreign tax residency (‘FTR’) section of the application or in the separate self-certification form must be completed for the entity itself. Some entities will need to complete the FTR section for the controlling persons of that entity.
Reporting starts from 30 June 2018 for New Zealand and annually from there on.
What do you need to do?
- If you are a foreign tax resident, you will need to provide your country of tax residency and TIN, or select a reason for why you don’t have one.
- If you select a ‘no TIN’ reason we may request additional information.
- Paper forms will include a mandatory FTR section.
- Where the paper form or online application does not have a FTR section, a separate FTR self-certification form will need to be completed before the account can be opened.
- If your tax residency changes, you will need to provide the updated information on the FTR self-certification and return it to AMP Capital.
- The FTR self-certification form is available within Forms and Tools
- If a customer provides misleading or false information they may be subject to a penalty from the ATO.
What will happen with the information you provide?
If you are a foreign tax resident, your information and account details will be reported annually to the IRD. This information will then be provided to your resident tax authority to meet the requirements of the Automatic Exchange of Information. We will process your personal information in accordance with our privacy statement and New Zealand privacy laws.
If you would like to know more, please refer to:
This content has been prepared for the purpose of providing general information only, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of the information on this website, and seek professional advice, having regard to their objectives, financial situation and needs. All information on this website is subject to change without notice.
AMP Investment Management (N.Z.) Limited (FSP37681) is the manager and issuer of the various AMP Capital Investment Funds offered through this website. Product Disclosure Statements for the funds are available and can be obtained from the Pricing and Performance page.