If you pay dividends, interest and royalties to New Zealand residents you need to deduct resident withholding tax (RWT).
Register as a RWT payer
Dividends, interest and royalties paid to residents are known as resident passive income.
You’ll need to:
- deduct resident withholding tax from these payments, and
- register as a payer and send the deductions to us.
Investment income reporting
If your business or organisation is a payer of investment income, you must send us information about who you pay. This helps us make sure people are paying the right amount of tax, and receiving the correct entitlements.
The reporting requirements for investment income are changing. Payers of investment income can keep using the existing rules until 1 April 2020. All businesses and organisations will need to follow the new rules from that date.
New reporting requirements for 2019
If you start following the new reporting requirements during 2019, send the following to cover from 1 April to the date you start following the new requirements.
If you pay Māori authority distributions or specified dividends (dividends treated as interest) you must send us:
- RWT dividends treated as interest/ Māori authority distributions - IR17
- RWT on dividends treated as interest/ Māori authority distributions - IR17P
- RWT reconciliation statement - IR17S.
If you pay other dividends you must send us:
- RWT form - IR4K.
All other payers must send us:
- RWT withholding certificate - IR15
- RWT on interest form - IR15P
- RWT on interest reconciliation statement - IR15S.
You will need to complete a reconciliation to make sure we receive a full year of information. This reconciliation can be done when you transition into the new reporting requirements or it can be supplied in the old format up to 15 May 2020
Some people or organisations may have a RWT exemption when:
- income is exempt from tax, including RWT, under New Zealand tax law
- income is exempt from tax because of any other New Zealand legislation
- double tax agreements allow for an exemption from tax on certain types of income.
Do not deduct RWT from someone who presents you with current certificate of exemption.