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Income Tax Act 2007

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

RF 15: Commissioner’s power to vary amounts of tax

You could also call this:

“Tax Commissioner can adjust non-resident withholding tax in special cases”

The Commissioner has special powers to change how non-resident withholding tax (NRWT) works in certain situations. These powers are meant to help when there are special circumstances for a person or group of people.

The Commissioner can do two things. First, they can say you don’t have to withhold NRWT when you usually would need to. This applies to the rules in section RA 6(2), RF 3, RF 4, or RF 10. Second, they can change how much tax you need to withhold under section RA 6(2).

However, there’s an exception. The Commissioner can’t use these powers for interest payments that are shared between someone who lives outside New Zealand and someone who lives in New Zealand. This is explained in section RF 12(1).

When the Commissioner uses these powers, it’s as if the NRWT rules have been changed just for that specific case. This means you follow the Commissioner’s decision as if it were part of the regular rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520375.

Topics:
Money and consumer rights > Taxes
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Part R General collection rules
Withholding tax on non-resident passive income (NRWT)

RF 15Commissioner’s power to vary amounts of tax

  1. For the purposes of meeting the special circumstances of a case or class of cases, the Commissioner may—

  2. relieve a person from an obligation to withhold NRWT under section RA 6(2) (Withholding and payment obligations for passive income), RF 3, RF 4, or RF 10; or
    1. vary the amount of tax that a person must withhold under section RA 6(2).

      1. This section does not apply to an amount of tax for a payment of interest derived jointly with a person resident in New Zealand as described in section RF 12(1).

      2. On the exercise of a power under subsection (1), the NRWT rules apply in the particular case as if they were amended in the way in which the power is exercised.

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