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Income Tax Act 2007

General collection rules - Withholding tax on retirement scheme contributions

RH 2: Retirement scheme contributions

You could also call this:

“Money added to your retirement savings scheme by someone else”

When you’re part of a retirement savings scheme, someone called a retirement scheme contributor can put money into the scheme for your benefit. This money is called a retirement scheme contribution.

The money contributed can include special credits called imputation credits or Maori authority credits.

The total amount of a retirement scheme contribution is made up of two parts: the money that goes into your retirement savings scheme, and the tax for the contribution.

When a contributor makes a retirement scheme contribution, they need to take out some money for tax and send it to the government. They have to do this every month.

The contributor can ask the retirement savings scheme to help work out how much tax to pay and to send the money to the government for them.

If you want to know more about when the tax payments are due, you can look at section RA 15.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1690711.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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RH 1: RSCT rules and their application, or

“How retirement savings contribution tax (RSCT) rules work and when they apply”

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RH 3: Retirement savings schemes, or

“Rules for accessing money in retirement savings schemes”

Part R General collection rules
Withholding tax on retirement scheme contributions

RH 2Retirement scheme contributions

  1. A retirement scheme contribution means a contribution in money by a retirement scheme contributor to a retirement savings scheme for the benefit of a person who is a member of, or who has an ownership interest in, the contributor.

  2. For the purposes of subsection (1), money includes an amount of an imputation credit or a Maori authority credit.

  3. The amount of a retirement scheme contribution is the sum of—

  4. the amount of the contribution received by the retirement savings scheme and not withheld under subsection (5) on behalf of the retirement scheme contributor; and
    1. the amount of tax for the retirement scheme contribution.

      1. A retirement scheme contributor who pays an amount that represents a retirement scheme contribution must withhold and pay to the Commissioner the amount of tax for the contribution. The amount is payable monthly under section RA 15 (Payment dates for interim and other tax payments).

      2. For the purposes of subsection (4), a contributor may appoint the retirement savings scheme as agent in relation to the calculation and payment of the amount of tax.

      Compare
      Notes
      • Section RH 2: inserted, on , by section 545 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).