When you're an offshore RLWT person selling a New Zealand residential property, RLWT is deducted when:
- a purchase amount is paid or payable, excluding deposits or part payments that total less than 50% of the sale amount on or after 1 July 2016
- the property sold is in New Zealand and is residential land
- you acquired the property on or after:
- 1 October 2015 through to 28 March 2018 inclusive and sold the property within the 2-year bright-line period
- 29 March 2018 through to 26 March 2021 inclusive and sold the property within the 5-year bright-line period
- 27 March 2021 and sold the property within the 10-year bright-line period.
Please note that a property acquired on or after 27 March 2021 will be treated as having been acquired before 27 March 2021, if the purchase was the result of an offer the purchaser made on or before 23 March 2021 that cannot be withdrawn before 27 March 2021.
Your conveyancer deducts RLWT
Your conveyancer, such as your lawyer or law firm you use to process the sale, is your withholder and deducts RLWT for you. If you do not have a conveyancer then the purchaser's conveyancer deducts RLWT for you. If the purchaser does not have a conveyancer then the purchaser must withhold the RLWT for you. Before they can, you'll need to give them:
- a residential land withholding tax declaration form - IR1101
- supporting documents as stated on the form.
If you do not give them these, you may be committing an offence under the Tax Administration Act 1994.
When RLWT is not deducted
The withholder will not need to deduct RLWT from offshore RLWT persons in the following situations.
- A sale or disposal of an inherited property or relationship property settlement.
- The property transfer is from a deceased person to the executor or administrator of the estate.
- The property transfer is by an estate on the death of a person.
- The seller is a beneficiary of an estate selling/disposing of an inherited property.
- The seller holds a valid certificate of exemption.
Joint ownership and RLWT
RLWT is deducted differently for a jointly owned property. An offshore RLWT person will only have RLWT deducted from their share of the property sale profit.
Your withholder can use our RLWT calculator to work out how much to deduct.
This tool will help a withholder work out the RLWT to deduct and pay to us.Go to this tool