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Income Tax Act 2007

General collection rules - General withholding and payment obligations

RA 17: Payment date when RWT-exempt status ends

You could also call this:

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

If you have RWT-exempt status, it means you don’t have to pay resident withholding tax. This section talks about what happens when that status ends.

When your RWT-exempt status ends in a month of the tax year, you need to pay any tax you’ve withheld but haven’t paid yet. You must pay this to the Commissioner by the 20th day of the month after your status ended.

For example, if your status ended in May, you would need to pay by June 20th.

However, if you still need to withhold RWT because you’re carrying on a taxable activity, this rule doesn’t apply to you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519766.

Topics:
Money and consumer rights > Taxes
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Part R General collection rules
General withholding and payment obligations

RA 17Payment date when RWT-exempt status ends

  1. This section applies in relation to a month of a tax year when a person’s RWT-exempt status ends.

  2. The person must pay to the Commissioner by the 20th day of the month following that in which the status ends the total amount of tax withheld by them to the extent to which the amount remains unpaid.

  3. This section does not apply if the person continues to be required to withhold RWT through the carrying on of a taxable activity.

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Notes
  • Section RA 17 heading: amended, on , by section 182(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RA 17(1): amended, on , by section 182(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RA 17(2): amended, on , by section 182(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RA 17 list of defined terms RWT-exempt status: inserted, on , by section 182(4)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RA 17 list of defined terms RWT exemption certificate: repealed, on , by section 182(4)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).