If you pay dividends, interest or royalties to New Zealand residents, these are known as resident passive income. If you make payments that are resident passive income you'll need to:
- register as a payer
- deduct resident withholding tax (RWT) from these payments
- send the deductions to us.
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 gives you a current certificate of exemption.