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RL 5: Paying RLWT
or “How to pay Residential Land Withholding Tax to Inland Revenue”
You could also call this:

“How to get a refund on your Residential Land Withholding Tax”

You can get back some of the Residential Land Withholding Tax (RLWT) you paid when you sold residential land. The Commissioner can repay you if:

  1. You’re likely to have extra tax credit from the RLWT for the tax year. This is worked out as if you only had income and expenses from land that year, using the tax rate from section RL 4(3).

  2. You don’t owe any other tax under Inland Revenue laws.

  3. You give the Commissioner the right information using the form described in section 54D of the Tax Administration Act 1994. You also need to include any required documents with this form.

If the Commissioner pays you back any RLWT, it’s treated as if you never paid that amount for the land you sold. This is important for section LB 6B, which talks about tax credits for RLWT.

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Next up: RM 1: What this subpart does

or “This section outlines rules for tax refunds and their usage”
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Part R General collection rules
Residential land withholding tax

RL 6Commissioner repaying RLWT

  1. An amount of RLWT paid in relation to a person’s disposal of residential land may be repaid by the Commissioner to the person if and to the extent to which—

  2. a tax credit for the RLWT is likely to be a surplus credit under section BC 8(4) for the relevant tax year, treating the person as only having income and deductions for land for the tax year and the relevant tax rate provided in section RL 4(3); and
    1. the person has no outstanding tax obligations under the Inland Revenue Acts; and
      1. the person gives the Commissioner the information in the form prescribed under section 54D of the Tax Administration Act 1994, including any prescribed accompanying documents.

        1. For the purposes of section LB 6B (Tax credits for RLWT), an amount of RLWT repaid by the Commissioner is treated as not paid in relation to the residential land that the person disposed of.

        Notes
        • Section RL 6: inserted, on , by section 49 of the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016 (2016 No 21).