Income Tax Act 2007

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

RF 3: Obligation to withhold amounts of tax for non-resident passive income

You could also call this:

"Pay tax on money earned by people who don't live in New Zealand"

When you make a payment of non-resident passive income, you must withhold the amount of tax for the payment and pay it to the Commissioner. This obligation to withhold arises under section RA 6(2) at the time of payment. You do not have to withhold tax for an amount treated as a dividend under section GB 1(3).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520316.

This page was last updated on 29 January 2026 — View changes

Topics:

Money and consumer rights > Taxes

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Part RGeneral collection rules
Withholding tax on non-resident passive income (NRWT)

RF 3Obligation to withhold amounts of tax for non-resident passive income

A person who makes a payment of non-resident passive income must withhold the amount of tax for the payment and pay it to the Commissioner. The obligation to withhold arises under section RA 6(2) (Withholding and payment obligations for passive income) at the time of payment.
Despite subsection (1), no obligation to withhold NRWT arises in relation to an amount treated as a dividend under section GB 1(3) (Arrangements involving dividend stripping).

Compare

2004 No 35 s NG 8(1)

Notes

Section RF 3(1) heading: inserted (with effect on 1 April 2008), on 7 December 2009, by section 112(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3(2) heading: added (with effect on 1 April 2008), on 7 December 2009, by section 112(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3(2): added (with effect on 1 April 2008), on 7 December 2009, by section 112(2) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3 list of defined terms amount: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3 list of defined terms dividend: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
Section RF 3 list of defined terms NRWT: inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).