Yesterday the Minister of Revenue and the US Chargé d’Affaires signed an Intergovernmental Agreement (IGA) to implement the Foreign Account Tax Compliance Act (FATCA) in New Zealand.

Quoting from the Minister’s media release:-

“This agreement is much the same as negotiated by a number of other nations including Denmark, Australia and the UK. The key difference is that we have managed to negotiate New Zealand-specific exemptions for entities and accounts that are considered low-risk from a US tax evasion and avoidance perspective. This includes Superannuation, KiwiSaver schemes, tax pooling accounts, registered charities, and Maori authorities as defined by tax legislation.”  For the full media release click here.

We are delighted that the signed IGA confirms this recognition of registered superannuation schemes and KiwiSaver schemes for FATCA exemption purposes. In practical terms it appears that every KiwiSaver scheme and registered superannuation scheme is a “treaty qualified retirement fund” and thus fully exempted. 

Workplace Savings NZ is pleased to have been a part of the Inland Revenue FATCA working group, and was heavily involved in getting this outcome for superannuation and KiwiSaver schemes. This exemption delivers considerable process and costs savings for our membership, and is excellent news for the entire workplace retirement savings industry in New Zealand.

Bruce Kerr
Executive Director
Workplace Savings NZ - the voice of workplace savings