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Budget 2024: The Government has announced FamilyBoost, a proposed new childcare payment to help eligible families with the rising costs of Early Childhood Education (ECE). Find out more:

If you pay dividends or interest to New Zealand residents, these are known as resident passive income. If you make payments that are resident passive income you'll need to:

Resident passive income

Resident passive income means an amount paid to a New Zealand resident that is one of the following:

  • interest
  • a dividend
  • a taxable Māori authority distribution (other than a retirement scheme contribution)
  • a replacement payment paid to a person under a share lending arrangement.

Under the resident withholding tax rules, resident withholding tax usually needs to be withheld from resident passive income, although there are some exceptions.

Resident withholding tax exemptions

Some people or organisations may have a resident withholding tax exemption when:

  • income is exempt from tax, including resident withholding tax, under New Zealand tax law
  • income is exempt from tax because of any other New Zealand legislation
  • double tax agreements allow for an exemption from tax on certain types of income.

Do not deduct resident withholding tax from someone who has a resident withholding tax exemption. Use the exemption register to check.

Resident withholding tax exemption register

Last updated: 05 Dec 2023
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