Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

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

RE 26: Payment by proxy

You could also call this:

“How withholding tax works when someone else pays on your behalf”

If you are an RWT proxy, you might need to withhold RWT from a payment of resident passive income. When you do this, it’s treated as if you withheld the amount at the exact time you made the payment. This means that even though you’re acting on behalf of someone else, the law sees it as if you personally took out the RWT when you paid the money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520291.

Topics:
Money and consumer rights > Taxes
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“Tax withheld from share-lending payments becomes an imputation credit”

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RE 27: RWT-exempt status, or

“Exemption from having tax deducted from your investment income”

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

RE 26Payment by proxy

  1. An RWT proxy who is required to withhold RWT in relation to a payment of resident passive income is treated as having withheld the amount from the payment at the time the payment is made.

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