Legislation that applies to tax

Under the Taxation Administration Act (1953), NAB is required to ask customers about their tax details. NAB will ask you questions about your local and overseas tax obligations.

We explain more about our tax compliance obligations and the legislation that applies below.

Foreign Account Tax Compliance Act

The Foreign Account Tax Compliance Act (FATCA) is legislation aimed at preventing tax evasion by U.S. persons (individuals and entities. All non - U.S. Financial Institutions (FFIs) are required to identify and report financial accounts held by U.S. citizens or U.S. residents to the U.S. Internal Revenue Service (IRS).

Many countries, including Australia, have entered into inter-governmental agreements (IGA) with the U.S., to enable FFIs in these jurisdictions to comply with FATCA under their local legislation, thus leveraging and improving existing tax information sharing arrangements between the IRS and the relevant local tax authorities. The obligation on NAB to adhere to FATCA in Australia is driven by the Australia- U.S. IGA, opens in new window, and the supporting Australian legislation.

Common Reporting Standard

The Common Reporting Standard (CRS) is an international initiative involving over 100 countries to the exchange of information on accounts held by non-resident individuals and entities with the tax authorities in their respective countries of tax residency.

To comply with CRS, banks and other financial institutions are required to collect foreign tax residency information from their customers. The aim of this legislation is to promote a reduction in offshore tax evasion. All participating countries, which includes Australia, are required to identify and report foreign account holding information to their local tax authority which will be disclosed to the relevant foreign tax authorities.

All NAB customers (individuals, business, trust, etc.) are subject to this legislation.

Different information collection for FATCA and CRS

FATCA requires NAB to ask you if you are a U.S. citizen or a U.S. tax resident. CRS requires NAB to ask you about your foreign tax residency.

What is tax residency?

Foreign tax residency is determined by the rules of each participating country’s taxation laws. It is important that your tax residency information is correct, complete and not misleading.

This includes, ensuring you advise NAB within 30 days of any change in circumstances that affects your tax residency status and to provide NAB with an updated self certification within 30 days of such change in circumstances.

Under local legislation, severe penalties may apply for providing false or misleading information.

For more information, we suggest you contact your tax adviser or refer to the ATO website, opens in new window.

Our obligations to collect and share information

Collecting and sharing foreign tax information

Customers who are foreign tax residents may be reported to ATO on an annual basis.

Collection and sharing of foreign tax information will be done in accordance with our Privacy Policy and we will only share information required to meet our statutory obligations.

How to provide your tax residency details

Use NAB Internet Banking or the NAB app to provide your tax residency details and check your contact and address details are up to date.

More information about CRS

More information on CRS can be found on the below sites:

Please contact our dedicated CRS team on 1300 550 316 or 1300 103 191 or +61 3 8903 9907 (Monday to Friday, 9:00am to 5:00pm (AEST/AEDT)) or email us at CRS.Due.Diligence@nab.com.au.

Important information