When you're an offshore RLWT person selling a New Zealand residential property, RLWT is deducted when:
- a sale amount is paid or payable on or after 1 July 2016
- the property sold is in New Zealand and defined as a residential land
- the seller:
- purchased the property on or after 1 October 2015 through to 28 March 2018 inclusive and owned the property for less than two years before selling
- purchased the property on or after 29 March 2018 and owned the property for less than five years before selling
- is an offshore RLWT person.
Your withholder deducts residential land withholding tax
Your withholder deducts 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 inherited properties 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 residential land withholding tax
RLWT is deducted differently for a joint owned property. Only the offshore RLWT person will have RLWT deducted from their share of the property sale.
Your withholder can use our RLWT calculator to work out how much to deduct.