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Income Tax Act 2007

General collection rules - General withholding and payment obligations

RA 16: Payment date when taxable activity ends

You could also call this:

“When to pay remaining tax after ending your business”

This section tells you what to do when you stop your business activities and you still need to pay some tax. It applies when you have to pay RWT (Resident Withholding Tax) or NRWT (Non-Resident Withholding Tax) as mentioned in section RA 6.

If you stop doing business completely, or if you no longer do business in New Zealand, you need to pay all the remaining tax you owe. You must pay this to the tax office (the Commissioner) by the 20th day of the month after you stop your business.

However, if you’re dealing with resident passive income (like interest or dividends) and you still have RWT-exempt status, you don’t have to follow this rule.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519764.

Topics:
Money and consumer rights > Taxes
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RA 15: Payment dates for interim and other tax payments, or

“When you need to pay different types of tax to the government”

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RA 17: Payment date when RWT-exempt status ends, or

“When to pay tax after losing RWT-exempt status”

Part R General collection rules
General withholding and payment obligations

RA 16Payment date when taxable activity ends

  1. This section applies for a month when a registered person is required under section RA 6 to withhold and pay RWT or NRWT, and the person—

  2. stops carrying on a taxable activity; or
    1. no longer carries on a taxable activity in New Zealand.

      1. The person must pay to the Commissioner by the 20th day of the next month the total amount of tax for all payments relating to the taxable activity to the extent to which an amount of tax remains unpaid.

      2. This section does not apply for resident passive income if the person’s RWT-exempt status continues.

      Compare
      Notes
      • Section RA 16(3): amended, on , by section 181(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section RA 16 list of defined terms RWT-exempt status: inserted, on , by section 181(2)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
      • Section RA 16 list of defined terms RWT exemption certificate: repealed, on , by section 181(2)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).