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Requirements for issuing RWT certificates

There are certain requirements for the information you must give to the people you pay interest and dividends to.

If you pay interest

The RWT withholding certificate

You must supply a RWT withholding certificate (IR15) to each recipient you have paid interest to with RWT deducted.

The certificate must show:

  • the recipient and payer's full name and address
  • the recipient and payer's IRD numbers
  • a statement that the resident passive income is for either interest or specified dividends. This is achieved by completing the IR 15 for interest and the IR 17 for dividends treated as interest (formerly specified dividends)
  • the date the RWT deduction was made, or if there is more than one deduction, the year the deductions were made
  • the amount of resident passive income and RWT
  • there are three options for the RWT rate applied to the resident passive income.
    • the average RWT rate for the year (total RWT deducted divided by the total resident passive income)
    • the rate that would be applied if the resident passive income was paid at the end of the tax year
    • the details for each actual rate or rates used during the year, you may need to complete more than one certificate.

You can give this information to the recipients either progressively or at the end of the year. You can use either an RWT withholding certificate (IR15), which you can order by phoning INFOexpress on 0800 257 773, or an alternative form that shows the above information.

Dates to send the information by

Whichever form you use, you must give this information to the recipient by:

  • 20 May (for an end-of-year notice), or
  • the 20th of the following month if you are ceasing to be a payer, or
  • within 20 days of when a recipient requests it (in any other case).


Note

The RWT withholding certificate (IR15) and Reconciliation statement (IR15S) must cover the period 1 April to 31 March regardless of your accounting year.

You can either give the form to the recipient personally or post it to the last known mailing address. For joint accounts, you only have to send one notice.

If you pay interest of $50 or less

If you pay interest of $50 or less to a recipient, you don't have to supply a deduction certificate unless they ask for one in writing. In that case, you must supply the certificate within 20 working days of receiving the recipient's written request.

We also recommend you include details as set out in the Commissioner's statement about requesting a personal tax summary.

If you pay dividends

You must supply a shareholder dividend certificate to each shareholder you pay dividends to - with or without RWT deducted.

The shareholder dividend statement

When a company pays a shareholder a dividend with any imputation, FDP or CTR credit attached, you must give the shareholder a shareholder dividend statement at the time you pay the dividend.

This statement must be in a form approved by us, and show the following details:

  • name of the company
  • date of payment of the dividend
  • name, address and IRD number of the shareholder receiving the dividend
  • amount of any RWT deducted
  • amount of any NRWT deducted
  • amount of the dividend paid to the shareholder, excluding imputation credits
  • the amount of any imputation credits attached
  • total of the dividend plus any imputation credit attached
  • if any FDP credits are attached:
    • the amount of the FDP credit
    • the combined total of the dividend plus the imputation and FDP credits
    • the sum of the imputation credit and the FDP credit.
  • if any CTR credits are attached:
    • the amount of the CTR dividend paid
    • the aggregate of the dividend paid to the shareholder and
    • the CTR dividend paid to the shareholder.
  • any other information we require.

Find out more about imputation credits.

 

Note

Australian companies paying a dividend with an imputation credit attached are required to specifically use the term "New Zealand imputation credit" on the shareholder dividend statement. This is because the term "imputation credit" is also used in Australia for Australian credits of company tax attached to dividends.

 


Date published: 27 Sep 2010

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