From 1 April 2020, the reporting requirements for investment income have changed.
If you pay interest you need to send us the following information after each payment period:
- name, IRD number and contact address of the payer
- amount of interest paid and tax withheld in the period for which interest is paid.
The following information is required for each of the income recipients who received interest:
- their name
- their contact details - email, street address or mobile phone number
- the amount and type of income paid to them
- the tax withheld or the approved issuer levy paid on it
- the date the tax was withheld or the levy paid.
If it is available, you need to provide the following information for each of the income recipients who received interest:
- their IRD number
- their date of birth
- the tax rate they provided.
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 interest income was paid to the investor. You only need to report for the periods in which you make a payment and withhold tax on that payment.
You do not need to provide resident withholding tax certificates to investors who have provided you their IRD number, but you do need to give them to those who have not. This also applies to dividends treated as interest and when an agent or trustee withholds RWT from dividends.
All 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 is 45% if the recipient has not supplied an IRD number.