Legal Entity Identifier (LEI) vs Inland Revenue Department (IRD) in New Zealand
The Legal Entity Identifier (LEI) is a standard identifier that provides verified data on legal entities and is registered on a centralised system, the Global LEI System. In New Zealand, the Tax Identification Number (TIN) is called the Inland Revenue Department (IRD). An IRD number is a unique number issued by Inland Revenue to individuals and non-individual customers (such as Companies, Partnerships, Trusts, and Charities). It is required when a customer needs to interact with New Zealand’s tax system, including residents and non-residents.
Legal Entity Identifier (LEI) in New Zealand
The LEI is a 20-character alphanumeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). LEI number references important information that offers transparency when participating in financial transactions such as trading with stocks, bonds, or forex.
LEI connects to key reference information that enables a clear and unique identification of legal entities participating in financial transactions on a global scale. Each LEI contains well-structured reference data categorised into two sections: Level 1 – who is who and Level 2 – ‘who owns whom.’
Level 1 data includes entity registration details, such as legal name, number of registrations, legal and HQ address, etc. Level 2 contains information about an entity’s ownership structure and thus answers the question of ‘who owns whom.’
The publicly available LEI data pool transfers unstructured entity registration data into a standardised global directory, which helps to enhance transparency in the global marketplace.
How do you get an LEI in New Zealand?
An LEI number must be obtained through an LEI service provider, a Local Service Provider (LOU), or a Registration Agent. The Global LEI System (GLEIS) encourages competition between LEI issuers and registrators to benefit legal entities seeking an LEI. Therefore, generating a price for issuing and maintaining an LEI has been left to the organisations. This explains why some companies charge double the cost of their competitors.
Where to find LEIs in New Zealand?
Any interested party can access and search the complete global LEI data pool free of charge. You’ll be able to quickly source information on who is who and ‘who owns whom.’
LEI Register – Number one Registration Agent worldwide
LEI Register is an official Registration Agent – we have been helping legal entities apply for new LEI codes or transfer and renew existing LEI codes since early 2018. We have successfully pursued our goal of making the LEI registration process simple, automated, fast, and affordable. At LEI Register, we keep our profit margins low and believe in building long-term business relationships.
Tax Identification Number (TIN) in New Zealand
Inland Revenue Department (IRD)
IRD stands for “Inland Revenue Department”. An IRD number is a unique tax number given to you by the Inland Revenue Department of New Zealand so that you can pay the correct work taxes as you work in New Zealand.
It is used for all taxes that a customer is registered for – including Income Tax, Goods and Services Tax, and Employer taxes (such as Pay as You Earn and Fringe Benefits Tax) and for any social policy entitlements operated by Inland Revenue – including Working for Families Tax Credits, Child Support, Student Loans, Paid Parental Leave, and KiwiSaver.
How to get an IRD?
To get an IRD number, you must fill out an application form and send it to Inland Revenue. As Inland Revenue has signed up for NZ’s Evidence of Identity Standard, you must provide supporting documentation to confirm their identity. For individuals, this includes a combination of documents such as birth certificate, passport, and driver’s license. For non-individuals, documents include a certificate of incorporation, deed of trust, and certificate of registration.
Where to find IRDs in New Zealand?
IRD numbers are printed on all tax returns, letters (including the initial notification following registration into the tax system), and notices sent to customers. Employees are often shown on payslips issued by their employers. For businesses registered for GST (Goods and Services Tax), they are shown on Tax Invoices. They are also displayed in a customer’s online services account with Inland Revenue (myIR).
New Zealand TIN (2022) [online].
Available at: https://www.oecd.org/tax/automatic-exchange/crs-implementation-and-assistance/tax-identification-numbers/New%20Zealand-TIN.pdf [Accessed 5th April 2022]
