New Zealand: Bonds – New Zealand tax exempt beneficial owners now eligible to hold New Zealand bonds
Clearstream Banking1 informs customers that effective
customers that are beneficial owners, resident for tax purposes in New Zealand, or not resident in New Zealand but with a permanent establishment in New Zealand, recognised by the New Zealand Inland Revenue Department (IRD) as having the Resident Withholding Tax (RWT) exempt status are now eligible to hold New Zealand bonds and to benefit from tax exemption.
Eligible beneficial owners should apply for RWT exempt status at the New Zealand IRD in order to be added to the resident withholding tax exemption register and get an IRD number. Clearstream Banking does not assist in this regard. Customers should consult their tax advisor for further information.
Previously only non-residents of New Zealand could hold New Zealand bonds via Clearstream Banking.
Note: The holding restriction remains for all New Zealand residents that do not fall under the tax-exempt category. Customers are responsible for ensuring compliance with this restriction.
Impact on customers
Following the amended holding restriction, all customers should use the revised One-Time Certifications for new applications:
- One-Time Certification for New Zealand Government Debt Securities and other New Zealand Domestic Debt Securities governed by the Approved Issuer Levy Regime.
- One-Time Certification for Non-Resident Withholding Tax (NRWT) Regime on New Zealand Domestic Debt Securities.
Customers who have already submitted their One-Time Certification and wish to onboard New Zealand tax exempt beneficial owners should submit the revised One-Time Certification and revoke the previous version in place on their account(s) via Swift message.
The forms are available under Tax Forms to use - New Zealand.
For customers who have already submitted their One-Time Certification and do not wish to onboard New Zealand tax exempt beneficial owners, the One-Time Certification in place remains valid until revoked.
The Market Taxation Guide - New Zealand will be updated in due course.
For further information about procedures, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.