From 1 April 2020, the reporting requirements for investment income are changing.
If you pay dividends you need to send us the following information after each payment period:
- your name, IRD number and contact address
- the total amount of dividends paid
- the total amount of tax withheld
- the total amount of imputation credits provided
- the imputation ratio.
For dividends paid in AUD$, you also need to provide the exchange rate used and the AUD$ used to calculate the imputation ratio.
The following information is required for each of the income recipients who received dividends:
- their name
- their contact details (email, street address or mobile phone number)
- the amount and type of income paid
- the tax withheld
- the date the tax was withheld
- the imputation credits attached, if any.
If it is available, you need to provide the following information for each of the income recipients who received dividends:
- their IRD number
- their date of birth
- the tax rate they have provided
- the number of shares the dividend is declared for or, if the dividend is a bonus issue, the number of shares included in the bonus issue
- the date when the dividend is declared and the payment date of the dividend
- if the dividend is a bonus issue, the amount of the bonus issue as determined under section CD 7 or CD 8 of the Income Tax Act 2007.
You must provide the name of any joint owners. If held, you also need to provide the following information for any joint owners:
- IRD number
- date of birth
- contact address.
You will need to provide this information electronically unless you have an exemption.
Reports are due by the 20th of the month following the month in which the dividend was paid to the investor. You only need to report for the periods in which you pay a dividend.
From 1 April 2020, if an investor has provided their IRD number you will not need to file an:
- RWT deduction certificate for dividends treated as interest/Māori authority distributions only - IR17
- Annual reconciliation statement - IR17S.
How to file your investment income electronically
Paying taxAll withheld tax must be paid by the 20th of the month following the month in which the interest income was paid to the investor.
From 1 April 2020 the 'non-declaration' rate for RWT on interest income will be 45% if the recipient has not supplied an IRD number. If they have supplied an IRD number but not specified a rate, the 'default' rate of 33% will apply.