New Zealand: Foreign trusts, BEPS proposals | KPMG | GLOBAL

New Zealand: Recommendations for foreign trusts, inbound investment, BEPS proposals

New Zealand: Foreign trusts, BEPS proposals

The New Zealand government released three reports that take a position that—for tax and anti-money laundering—a global approach is best.


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The reports are:

  • An independent review of New Zealand’s foreign trusts proposes significantly expanded disclosure and reporting requirements.  
  • The taxation framework for inbound investment (a draft overview) outlines the case for considering the effect on other countries when establishing New Zealand’s tax policy settings.  
  • A Cabinet Paper covering New Zealand’s response to base erosion and profit shifting (BEPS) confirms interest and hybrid proposals will be consulted on in the second half of the year.  

KPMG observation

The triple release is a mix of the high-level, the detailed, and the theoretical. The New Zealand foreign trust recommendations—and even the inbound foreign investment tax framework and BEPS reports—are likely to directly affect very few. However, the reports reflect an attempt to position New Zealand and its regulatory system. They are all important documents for assessing New Zealand and its future trajectory in a world that responds collectively to perceived problems.

Of particular interest for FATCA/AEOI purposes are the following points:

  • The independent reviewer’s opinion that automatic exchange of information (AEOI) will not provide sufficient information of a New Zealand foreign trust’s activity to the New Zealand authorities. The independent reviewer’s view is that not many New Zealand foreign trusts will be investment entities under the common reporting standard (CRS) definitions. This may not be consistent with FATCA classifications for such entities.
  • Confirmation that legislation to implement AEOI is now expected to be introduced in August 2016, and likely to be enacted by December 2016. The legislation, albeit subject to submissions and consultation, would confirm New Zealand’s approach to AEOI.


Read a June 2016 report [PDF 586 KB] prepared by the KPMG member firm in New Zealand

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