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Income Tax Act 2007

General collection rules - Refunds

RM 8: Overpaid RWT or NRWT

You could also call this:

“Getting a refund for overpaid withholding tax”

If you pay too much resident withholding tax (RWT) or non-resident withholding tax (NRWT) to the Commissioner, the Commissioner will refund the extra amount. They will give the refund to you if you earned the payment, or to the person who withheld the tax if they have already paid you back.

If you have an interest in a foreign investment fund (FIF) and get money from it, you might be able to get a refund of the tax withheld. You can apply for this refund before 31 March after the tax was taken out. You need to show that you’ve gone over a certain amount of income for that year. You also need to tell the person who gave you the money that you’re asking for a refund.

The person who gave you the money can also apply for a refund if they’ve already paid you back the extra tax. They need to do this before 31 March after the tax was taken out. They have to show they’ve paid you and promise not to report this payment in their investment income information.

If you get a refund, it might be used to pay off other tax you owe.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520428.

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Money and consumer rights > Taxes
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Part R General collection rules
Refunds

RM 8Overpaid RWT or NRWT

  1. This section applies when a person is required to withhold and pay to the Commissioner an amount of resident withholding tax (RWT) or non-resident withholding tax (NRWT), and the amount is more than the amount required to be paid under this Part.

  2. The Commissioner must refund the amount of the overpayment to—

  3. the person who derives the payment from which the amount of tax was withheld; or
    1. the person who withheld the amount if they have paid the amount of the overpayment to the person deriving the payment and not subtracted the amount under section RA 12(5) and (6) (Adjustment to correct errors: certain excess amounts).

      1. Subsections (4) and (5) apply when—

      2. a holder of an attributing interest in a FIF receives a distribution from which an amount of tax for resident passive income has been withheld; and
        1. section CD 36 (Foreign investment fund income) applies to the distribution.

          1. The holder may apply for a refund if—

          2. they apply before the next 31 March after the date on which the amount was withheld, with supporting information to show that the threshold referred to in section CQ 5(1)(d) (When FIF income arises) has been exceeded for their corresponding income year; and
            1. the person making the distribution has not—
              1. paid them a refund of the amount; or
                1. applied themselves under subsection (5) for a refund in relation to the amount; and
                2. they notify the person making the distribution of their application under this subsection.

                  1. The person making the distribution may apply for a refund if—

                  2. they apply before the next 31 March after the date on which the amount was withheld, with supporting information to show the payment has been made to the holder without any subtraction permitted by section RA 12(5) and (6) (Adjustment to correct errors: certain excess amounts); and
                    1. the holder has not applied for a refund under subsection (4) in relation to the amount; and
                      1. they provide, in relation to the amount, a statement that they will not include particulars in their investment income information under sections 25F to 25H and make disclosure under section 25N of the Tax Administration Act 1994.

                        1. An amount of a refund paid under subsection (4) or (5) may be used under section RM 10 to satisfy a liability under the Inland Revenue Acts.

                        Compare
                        Notes
                        • Section RM 8(3) heading: added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8(3): added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8(4) heading: added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8(4): added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8(5) heading: added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8(5): added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8(5)(c): replaced, on , by section 233(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                        • Section RM 8(6) heading: added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8(6): added (with effect on 1 April 2008), on , by section 117(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8 list of defined terms apply: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
                        • Section RM 8 list of defined terms attributing interest: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8 list of defined terms corresponding income year: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8 list of defined terms FIF: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8 list of defined terms Inland Revenue Acts: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8 list of defined terms investment income information: inserted, on , by section 233(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                        • Section RM 8 list of defined terms notify: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
                        • Section RM 8 list of defined terms resident passive income: inserted (with effect on 1 April 2008), on , by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).