Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Core provisions - Withholding liabilities

BE 1: Withholding liabilities

You could also call this:

“Rules for deducting tax from different types of income and benefits”

When you earn money from working, the person paying you must take some of it out for tax. This is called PAYE.

If you get money from things like investments, the person paying you must take some of it out for tax too. This is called RWT if you live in New Zealand, or NRWT if you don’t.

If your job gives you extra benefits, like a company car, your employer has to pay a special tax on those benefits. This is called fringe benefit tax.

When your employer puts money into your retirement savings, they have to pay a tax on that money. This is called ESCT.

If you put money into a retirement savings scheme yourself, the person running the scheme has to pay a tax called RSCT.

If you buy a house in New Zealand and you’re connected to someone who lives overseas, the person buying the house might have to take some money out for tax. This is called RLWT, and you can find out more about who has to do this in section RL 3.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512376.

Topics:

Money and consumer rights > Taxes

Money and consumer rights > Savings and retirement

BD 4: Allocation of deductions to particular income years, or

“How to assign your expenses to the correct tax year”

BF 1: Other obligations, or

“Paying specific taxes under different parts of the law”

Part B Core provisions
Withholding liabilities

BE 1Withholding liabilities

A person who makes a PAYE income payment must withhold an amount from the payment under the PAYE rules.
A person who makes a payment of resident passive income must withhold an amount from the payment under the RWT rules.
A person who makes a payment of non-resident passive income must withhold an amount from the payment under the NRWT rules.
A person who provides a fringe benefit to another person must pay fringe benefit tax under the FBT rules.
A person who makes an employer's superannuation cash contribution must pay ESCT under the ESCT rules.
A person who makes a retirement scheme contribution to a retirement savings scheme must pay RSCT under the RSCT rules.
A person described in section RL 3 (Associated persons: who must pay, and how?) must withhold an amount from a residential land purchase amount under the RLWT rules.

Compare

2004 No 35 s BE 1

Notes

Section BE 1(1) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1(1): substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1(5) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1(5): substituted (with effect on 1 April 2008), on 6 October 2009, by section 5(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1(5B) heading: inserted, on 1 April 2008, by section 308(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section BE 1(5B): inserted, on 1 April 2008, by section 308(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section BE 1(6) heading: replaced, on 1 July 2016, by section 38(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section BE 1(6): replaced, on 1 July 2016, by section 38(1) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section BE 1 list of defined terms employer's superannuation cash contribution: inserted (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1 list of defined terms employer's superannuation contribution: repealed (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1 list of defined terms FDP: repealed (with effect on 30 June 2009), on 6 October 2009, by section 5(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1 list of defined terms FDP rules: repealed (with effect on 30 June 2009), on 6 October 2009, by section 5(6) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1 list of defined terms PAYE income payment: inserted (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(b) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1 list of defined terms PAYE payment: repealed (with effect on 1 April 2008), on 6 October 2009, by section 5(5)(a) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section BE 1 list of defined terms residential land purchase amount: inserted, on 1 July 2016, by section 38(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section BE 1 list of defined terms retirement savings scheme: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section BE 1 list of defined terms retirement scheme contribution: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section BE 1 list of defined terms RLWT rules: inserted, on 1 July 2016, by section 38(2) of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).
Section BE 1 list of defined terms RSCT: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
Section BE 1 list of defined terms RSCT rules: inserted, on 1 April 2008, by section 308(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).