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RE 28: When RWT-exempt status ends
or “When you lose your exemption from having tax withheld”
You could also call this:

“How to check if someone is exempt from RWT”

You can find out if someone has RWT-exempt status and if that status is still valid in a few ways. This is important for the rules about collecting resident withholding tax (RWT).

You can look at the electronic list that the Commissioner provides. This list shows details of people who have RWT-exempt status.

You can also take reasonable steps to check if the person is on a special list in the Tax Administration Act 1994. This list includes certain types of people or organisations that are exempt.

Another way is to get the person’s tax file number. If they tell you they have RWT-exempt status, that can be enough. But this doesn’t work for some specific types of exempt people or those who got their status directly from the Commissioner.

Remember, these rules help you figure out if you need to collect RWT from someone or not.

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Next up: RE 30: When unincorporated bodies have RWT-exempt status

or “Groups without official status can be exempt from resident withholding tax in certain situations”
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Part R General collection rules
Withholding tax on resident passive income (RWT)

RE 29Establishing whether persons have RWT-exempt status

  1. This section applies for the purposes of section RE 5(2) to set out the ways for person A to establish—

  2. whether person B is a person who has RWT-exempt status; and
    1. that the status has not ended.

      1. Person A may establish that—

      2. they have made a search of the electronic register that the Commissioner provides on which the details of persons with RWT-exempt status are listed; or
        1. they have taken reasonable steps to confirm that person B is a person listed in section 32E(2)(a) to (h) of the Tax Administration Act 1994; or
          1. except in relation to a person listed in section 32E(2)(k) or (l) of that Act or to whom the Commissioner has provided RWT-exempt status under section 32I of that Act, they have been given person B’s tax file number and have been notified that person B has RWT-exempt status.

            Notes
            • Section RE 29: replaced, on , by section 228 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).