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Income Tax Act 2007

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

RE 28: When RWT-exempt status ends

You could also call this:

“When you lose your exemption from having tax withheld”

When you no longer have RWT-exempt status, you need to follow some rules. This applies in any month when your RWT-exempt status ends. However, if you still need to withhold RWT as part of your taxable activities, these rules don’t apply to you.

If your RWT-exempt status ends, you must pay all the RWT you’ve withheld but haven’t yet paid to the Commissioner. You need to do this by the 20th day of the month after the month your status ended. For example, if your status ended in March, you’d need to pay by April 20th.

Remember, RWT stands for Resident Withholding Tax. It’s a type of tax that’s taken off some types of income before you receive it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520296.

Topics:
Money and consumer rights > Taxes
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RE 27: RWT-exempt status, or

“Exemption from having tax deducted from your investment income”

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RE 29: Establishing whether persons have RWT-exempt status, or

“How to check if someone is exempt from RWT”

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

RE 28When RWT-exempt status ends

  1. This section applies in a month when a person’s RWT-exempt status ends. But the section does not apply if the person continues to be required to withhold RWT in the course of carrying out a taxable activity.

  2. The person must pay to the Commissioner all amounts of RWT withheld and not paid to the Commissioner by the 20th day of the month following the month in which the status ends.

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Notes
  • Section RE 28 heading: replaced, on , by section 227(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RE 28(1): amended, on , by section 227(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RE 28(2): amended, on , by section 227(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RE 28 list of defined terms RWT-exempt status: inserted, on , by section 227(4)(a) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
  • Section RE 28 list of defined terms RWT exemption certificate: repealed, on , by section 227(4)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).