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New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - Withholding tax on resident passive income (RWT)

RE 1: RWT rules and their application

You could also call this:

“Rules for paying tax on income given to New Zealand residents”

The RWT rules are a set of laws that you need to follow if you pay resident passive income. These rules are made up of different parts of New Zealand’s tax laws.

The RWT rules include this part of the law, as well as other sections that talk about tax credits for RWT. They also include many other parts of the Tax Administration Act 1994.

If you pay any resident passive income, you must follow these RWT rules. This means the rules apply to you if you’re giving money to someone who lives in New Zealand, like interest on a loan or dividends from shares.

Remember, these rules are part of New Zealand’s tax system, so it’s important to understand them if you’re dealing with this kind of income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520191.

Topics:
Money and consumer rights > Taxes
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RE 2: Resident passive income, or

“What counts as income from investments for New Zealand residents”

Part R General collection rules
Withholding tax on resident passive income (RWT)

RE 1RWT rules and their application

  1. The RWT rules means—

  2. this subpart; and
    1. sections LA 4, LA 6, and LB 3 (which relate to tax credits for RWT); and
      1. subpart 3E, sections 26B, 26C, 27, 28, 28B, 54B to 54E, 55, 55B, 78D, 99, and 124ZF, Part 9, sections 170 to 172, and 185 of the Tax Administration Act 1994.

        1. The RWT rules apply to a person who pays an amount of resident passive income.

        Compare
        • 2004 No 35 s OB 1 RWT rules
        Notes
        • Section RE 1(1)(c): amended, on , by section 260(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
        • Section RE 1(1)(c): amended, on , by section 260(1) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).