Use the New Zealand non-resident withholding tax (NRWT) - IR386 when a non-resident you paid needs:
- to know how much NRWT they've paid before the end of the tax year
- a refund of NRWT.
You can only set up refunds for a non-resident you currently pay. Any former clients or non-residents you no longer pay will need to set up their own refund using the IR386.
The fastest way someone can get a refund is from you. You pay the recipient and use the IR386 to get the refund back from us.
Before you start
- the income year covered
- the recipient's full name, overseas address and postal address
- the recipient's IRD number, if you know it
- the recipient's bank account number, if needed
- the gross and net non resident passive income (NRPI)
- the correct NRWT and the difference that will be refunded
- your own name, address, IRD number and bank account number, if needed.
Fill out the form
You'll need a form for each person you're refunding.
Write us a cover letter
You’ll need to write us a letter with details of the refund. Send us the letter with the IR386 form.
The letter should include:
- your details
- the details of who is owed a refund and their IRD numbers, if known
- why a refund is needed.
We refund the overpaid amount
Usually you refund the non resident and we pay you back.
If the non resident is not a client of yours anymore, we’ll refund into the account noted in the IR386.
We can also transfer credit from your account into theirs. They'll need an IRD number and an account with us.
Send a client letter
You'll also need to send a letter to whoever will get the refund. Your letter needs to show the correct income and NRWT details for the income year covered.