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Income Tax Act 2007

General collection rules - General withholding and payment obligations

RA 6C: Withholding and payment obligations for residential land

You could also call this:

“Rules for paying tax when selling residential land”

When you sell residential land, you might need to pay a tax called Residential Land Withholding Tax (RLWT). If you’re the person selling the land, as described in section RL 2, you must pay RLWT to the Commissioner by the due date. The amount you pay is based on the residential land purchase amount.

If you’re connected to the person selling the land, as described in section RL 3, you also have responsibilities. You need to hold back some money from the sale and pay it to the Commissioner as RLWT by the due date. This is also based on the residential land purchase amount.

Both of these rules are part of subpart RL in the law, which deals with Residential Land Withholding Tax.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6887152.

Topics:
Money and consumer rights > Taxes
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Part R General collection rules
General withholding and payment obligations

RA 6CWithholding and payment obligations for residential land

  1. A person described in section RL 2 (Vendors: who must pay, and how?) must pay RLWT for a residential land purchase amount to the Commissioner under subpart RL (Residential land withholding tax) by the due date.

  2. A person described in section RL 3 (Associated persons: who must pay, and how?) must withhold and pay RLWT for a residential land purchase amount to the Commissioner under subpart RL by the due date.

Notes
  • Section RA 6C: inserted, on , by section 46 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).