Information you must report when you pay interest that you do not have to withhold tax from.
Not required to withhold tax
Interest payers do not have to withhold tax on the interest they pay if the:
- interest is on funds that do not generate taxable income
- amount of interest paid to generate taxable income is less than $5,000.
Registering as a payer of resident withholding tax
Information you must report
If you do not have to withhold the tax, you must still report the following information required for each income recipient who received interest:
- their name
- contact details - email, street address or mobile phone number
- the amount and type of interest paid to them.
Information to report if it's available
If you have it, you need to provide the following information for each of the income recipients who received interest:
- their IRD number or overseas equivalent
- their date of birth.
Joint owners receiving interest
You must provide the name of all joint owners. If you have it, you also need to provide the following information for any joint owners:
- IRD number
- date of birth
- contact details - email, street address or mobile phone number.
How to report
Report this electronically unless you have an exemption.
This is due when you file your income tax return.
James borrowed $200,000 from his parents to buy a house and pays $12,000 of interest. James runs a taxable activity selling go-carts from his garage. The garage is 20% of the floor area of the house so $2,400 of the interest is attributed to his taxable activity.
James does not have an RWT obligation in relation to the interest as only $2,400 of it relates to his taxable activity and this is less than $5,000.
James will instead need to file the investment income information described above with his income tax return for the related income year.