General collection rules - Withholding tax on non-resident passive income (NRWT)
RF 7: General rate for NRWT
You could also call this:
“The standard tax rate for non-resident passive income is 15%”
When you receive non-resident passive income, you need to pay tax on it. This is called non-resident withholding tax (NRWT). The general rule for NRWT is that you pay 15% of the amount you receive. This means if you get a payment, you multiply that amount by 0.15 to find out how much tax you need to pay.
This rule doesn’t apply to all non-resident passive income. There are some special cases covered in sections RF 8 to RF 12 where different rules might apply. But for most situations, this 15% rate is what you’ll use.
To work out the tax, you take the amount of the payment and multiply it by 0.15. For example, if you receive $100, you would calculate 100 × 0.15 = $15. This $15 is the amount of tax you need to pay on that $100 payment.
