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RA 5: Tax obligations for employment-related taxes
or “Employer's responsibilities for employment-related taxes”
You could also call this:

“Rules for withholding tax on income from investments”

When you make a payment of resident passive income, you must withhold and pay RWT (Resident Withholding Tax) to the Commissioner. You need to do this by the due dates set out in subpart RE.

If you make a payment of non-resident passive income, you must withhold and pay NRWT (Non-Resident Withholding Tax) to the Commissioner. This needs to be done by the due dates set out in subpart RF.

You must withhold the tax at the time you make the payment.

For some types of dividends, the law treats you as making the payment on what’s called the DRCD deferral date. This date is two years after the dividend was actually paid. This special rule applies to certain sections of the law that deal with imputation credit accounts and withholding and payment obligations.

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Next up: RA 6B: Withholding and payment obligations for retirement scheme contributions

or “Rules for deducting and paying tax on retirement savings contributions”
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Part R General collection rules
General withholding and payment obligations

RA 6Withholding and payment obligations for passive income

  1. A person who makes a payment of resident passive income must withhold and pay RWT for the payment to the Commissioner under subpart RE (Withholding tax on resident passive income (RWT)) by the due dates.

  2. A person who makes a payment of non-resident passive income must withhold and pay NRWT for the payment to the Commissioner under subpart RF (Withholding tax on non-resident passive income (NRWT)) by the due dates.

  3. Repealed

  4. An amount of tax withheld under subsections (1) and (2) must be withheld at the time the person makes the payment.

  5. For the purposes of subsections (2) and (4) and sections OB 9, OB 30, RA 15, and RF 3 (which relate to imputation credit accounts and withholding and payment obligations), a person who makes a payment of a dividend described in section CD 1(3) (Dividend) is treated as making the payment on the DRCD deferral date.

  6. For the purposes of this section and sections CD 1, OB 9, OB 30, RA 15, RF 3, and RF 11BB, the DRCD deferral date is the day that is the second anniversary of the date on which the dividend was actually paid.

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Notes
  • Section RA 6(3) heading: repealed (with effect on 30 June 2009), on , pursuant to section 490(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section RA 6(3): repealed (with effect on 30 June 2009), on , by section 490(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section RA 6(4) heading: inserted (with effect on 1 April 2008), on , by section 490(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section RA 6(4): inserted (with effect on 1 April 2008), on , by section 490(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section RA 6(5) heading: inserted (with effect on 30 August 2022), on , by section 99(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section RA 6(5): inserted (with effect on 30 August 2022), on , by section 99(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section RA 6(6) heading: inserted (with effect on 30 August 2022), on , by section 99(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section RA 6(6): inserted (with effect on 30 August 2022), on , by section 99(1) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section RA 6 list of defined terms dividend: inserted (with effect on 30 August 2022), on , by section 99(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section RA 6 list of defined terms DRCD deferral date: inserted (with effect on 30 August 2022), on , by section 99(2) of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).
  • Section RA 6 list of defined terms FDP: repealed (with effect on 1 April 2008), on , by section 490(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section RA 6 list of defined terms foreign dividend: repealed (with effect on 1 April 2008), on , by section 490(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).