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Income Tax Act 2007

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

RE 3: Obligation to withhold RWT

You could also call this:

“When and how you must withhold and pay resident withholding tax”

You must withhold resident withholding tax (RWT) and pay it to the Commissioner if you make a payment and you’re a person described in section RE 1(2). This applies if you have to withhold tax under section RE 4 and you’re not excluded by sections RE 5 and RE 6. It also applies if you’re an RWT proxy for the payment.

If the payment is a non-cash dividend, you need to work out the tax amount using section RE 14 and pay that to the Commissioner.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520198.

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”

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RE 4: Persons who have withholding obligations, or

“Who must withhold tax on certain payments”

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

RE 3Obligation to withhold RWT

  1. A person to whom section RE 1(2) applies is liable to withhold resident withholding tax (RWT) and pay the amount to the Commissioner if they make the payment and—

  2. they have an obligation to withhold an amount of tax under section RE 4 and are not excluded under sections RE 5 and RE 6 from meeting the obligation:
      1. they are an RWT proxy in relation to the payment.

        1. For the purposes of subsection (1), if the payment is a non-cash dividend, the person must calculate the amount of tax under section RE 14 and pay the amount to the Commissioner.

        Compare
        Notes
        • Section RE 3(1)(a): substituted (with effect on 1 April 2008), on , by section 526(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
        • Section RE 3(1)(b): repealed (with effect on 1 April 2008), on , by section 526(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).