Resident Withholding Tax is tax deducted on the payment of dividends and interest.
The tax is deducted on the payment date and not the date the interest was earned.
If the recipient of interest has a certificate of exemption, then no withholding tax is deducted.
The withholding tax required to be deducted on the payment of dividends to New Zealand resident shareholders is 33%, less any imputation credits attached to the dividends.
The withholding tax required to be deducted from interest is based on the rate chosen by the recipient, on the basis that the recipient has provided an IRD number.
Individuals, Trusts & Maori Authorities
The rates from 1 April 2020 are:
| If the investor has … | And is … | Then deduct RWT at … |
| Chosen a rate | An individual, a testamentary trust, or trust | 10.5%, 17.5%, 30% or 33% |
| Chosen a rate | A trust or a Maori authority | 17.5%, 30% or 33% |
| Not chosen a rate for an existing account | The default rate of 17.5% | |
| Not chosen a rate for a new account | The default rate of 33% | |
| Not provided a valid IRD number | The non-declaration rate of 45% |
 Companies
The rates from 1 April 2020 are:
|  If the investor has … | And they are … |  Then deduct RWT at … |
| Chosen a rate | Using a valid IRD number | 28% or 33% |
| Not chosen a rate | Using a valid IRD number | The default rate of 28% |
| Either provided an invalid, or no IRD number |
The non-declaration rate of 45% |
Partnerships
If the partnership’s IRD number is given to the interest payer, you may choose any of the rates that would apply as if the account were held in a partner’s name.
