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Ngā whakaritenga pūrongotanga hou mā ngā kaiutu moni hua New reporting requirements for payers of interest

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The reporting requirements for payers of interest are changing. Payers of interest can keep using the existing rules until 1 April 2020. All businesses and organisations will need to follow the new rules from that date.

Businesses and organisations that are registering for the first time may want to follow the new rules immediately to save having to change systems and processes on 1 April 2020.

You will need to register as a payer of resident withholding tax through myIR. Once you are registered you will need to elect into the new investment income regime.

This page describes the new requirements.

Information requirements

If you pay interest you need to send us the following information after each payment period:

  • the name, IRD number and contact address of the payer
  • the 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:

  • their IRD number
  • their date of birth
  • their 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 investors who have not.

Paying tax

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 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.