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Tax Administration Act 1994

Information, record-keeping, and returns - Statements, notices, and certificates - Resident passive income

32E: Applications for RWT-exempt status

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"How to apply to not pay withholding tax"

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You can apply for RWT-exempt status if you are listed in subsection 2. You must apply to the Commissioner and state the basis of exemption. Your application must include a declaration that you come within the basis of exemption. If you are registered as a charitable trust under the Charities Act 2005, you are treated as having RWT-exempt status. The Commissioner may ask you for more information about your application. You can be a person or an organisation, such as a bank or a building society, to apply for RWT-exempt status. You must tell the Commissioner why you are exempt and declare that you are eligible. The Commissioner will decide if you are exempt from RWT. You must provide any extra information the Commissioner needs.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1258114.

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Part 3Information, record-keeping, and returns
Statements, notices, and certificates: Resident passive income

32EApplications for RWT-exempt status

  1. A person who is registered as a charitable trust under the Charities Act 2005 is treated as having RWT-exempt status for the duration of the registration.

  2. A person listed in subsection (2) may apply to the Commissioner for RWT-exempt status.

  3. The persons are—

  4. a registered bank:
    1. a building society:
      1. the Public Trust or a company that would be a member of the same wholly-owned group of companies as the Public Trust, if it were a company for the purposes of this Act:
        1. the Māori Trustee:
          1. a statutory trustee company:
            1. a portfolio investment entity:
              1. the trustee of the Niue International Trust Fund:
                1. the trustee of the Tokelau International Trust Fund:
                  1. a person whose main business is—
                    1. borrowing money or accepting deposits, or receiving credit or selling a credit instrument; and
                      1. lending money or granting credit, or buying or discounting a credit instrument:
                      2. a person that is—
                        1. a nominee company subject to practice rules made by the Council of the New Zealand Law Society under section 96 of the Lawyers and Conveyancers Act 2006 and operated by a barrister and solicitor or an incorporated law firm; or
                          1. a broker’s nominee company to which the Securities Act (Contributory Mortgage) Regulations 1988 apply:
                          2. a practitioner within the meaning of the Lawyers and Conveyancers Act 2006 or incorporated firm within the meaning of that Act in relation to the operation of their trust account which is an account maintained under section 112 of that Act:
                            1. a person—
                              1. who has met their obligation to file a return of income under the Inland Revenue Acts within the time allowed; and
                                1. whose annual gross income for the tax year for which they last filed a return of income is more than $2,000,000:
                                2. a person in an accounting year who reasonably believes their annual gross income for the tax year that corresponds to the next accounting year will be more than $2,000,000:
                                  1. a person who derives in a tax year an amount that is exempt income under sections CW 38(2), CW 38B(2), CW 39(2), CW 40 to CW 52, and CW 64 of the Income Tax Act 2007 in relation to their activities in the capacity in which they derive the exempt income:
                                    1. a board that is constituted under subpart 5 of Part 3 of the Education and Training Act 2020 and is not carried on for the private pecuniary profit of any individual:
                                      1. a tertiary education institution that is established under subpart 3 of Part 4 or Part 4A of the Education and Training Act 2020 and is not carried on for the private pecuniary profit of any individual:
                                        1. a tertiary education subsidiary that derives exempt income under section CW 55BA of the Income Tax Act 2007:
                                          1. a person to whom section DV 8 of the Income Tax Act 2007 applies and who would, but for that section, have net income of an amount less than the amount set out in the section for their most recently ended accounting year.

                                            1. The person must apply to the Commissioner, and the application must—

                                            2. state the basis of exemption under subsection (2); and
                                              1. include a declaration by the person or an officer authorised by them that they come within the basis of exemption.

                                                1. The person must provide further information in relation to the application as the Commissioner requires.

                                                Compare
                                                Notes
                                                • Section 32E: inserted, on (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
                                                • Section 32E heading: amended, on , by section 293(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                                • Section 32E(1A): inserted, on , by section 98 of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).
                                                • Section 32E(1A): amended, on , by section 202 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
                                                • Section 32E(1): amended, on , by section 293(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                                • Section 32E(2)(d): amended, on , pursuant to section 30(2)(a) of the Māori Trustee Amendment Act 2009 (2009 No 12).
                                                • Section 32E(2)(ec): inserted, on , by section 616(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                • Section 32E(2)(ed): inserted, on , by section 616(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                • Section 32E(2)(i)(ii): replaced (with effect on 1 April 2008), on , by section 616(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
                                                • Section 32E(2)(k): amended, on , by section 30 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
                                                • Section 32E(2)(k): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 293(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                                • Section 32E(2)(kb): inserted, on , by section 55 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
                                                • Section 32E(2)(kb): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                                                • Section 32E(2)(kc): inserted, on , by section 55 of the Taxation (Personal Tax Cuts, Annual Rates, and Remedial Matters) Act 2008 (2008 No 36).
                                                • Section 32E(2)(kc): amended, on , by section 51 of the Education and Training Amendment Act 2023 (2023 No 45).
                                                • Section 32E(2)(kc): amended, on , by section 668 of the Education and Training Act 2020 (2020 No 38).
                                                • Section 32E(2)(kd): inserted (with effect on 1 July 2008), on , by section 293(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                                                • Section 32E(3): amended, on , by section 103 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).