Resident Withholding Tax (RWT) changes

The Inland Revenue Department (IRD) has implemented a number of changes to Resident Withholding Tax processes with effect 1 April 2020.

Here’s what these changes mean for you.

End of year tax certificates no longer provided automatically

For interest earned from 1 April 2020, you’ll no longer receive an end of year RWT/NRWT certificate from us if you have provided us with your IRD number. Instead, details of interest earned and tax deducted will be available on your myIR account. If you don’t have a myIR account you can register for one by visiting ird.govt.nz or calling Inland Revenue on 0800 227 774.

If you’d like an RWT certificate from us, please contact us on (06) 370 0070 or email [email protected].

If you haven’t provided us your IRD number we’ll still provide you with a tax certificate.

Provide your IRD number to avoid a higher tax rate

If we don’t have your IRD number, from 1 April 2020, the RWT rate on any interest earned on your accounts will increase from 33% to 45%.

You can check or add your IRD number by calling us on (06) 370 0070 or emailing [email protected]. If you don’t know your IRD number or need to apply for one see ird.govt.nz or call IRD on 0800 227 774.

RWT exemption register

From 1 April 2020, Inland Revenue will no longer issue RWT certificates of exemption. Instead, your exempt status will be shown on an online register maintained on Inland Revenue’s website.

If you have a RWT exemption certificate you should automatically appear on the register (unless your exemption has been cancelled, has expired or has been revoked). We’ll continue to treat you as RWT exempt if you’ve already provided us a copy of your exemption certificate and you appear on the exemption register.

If you’ve recently received an RWT exemption from Inland Revenue and would like us to apply the exemption to your accounts, you can call us on (06) 370 0070 or email [email protected]. If you don’t appear on the register, we won’t be able to apply exempt status to your account.

New 39% RWT rate introduced

IRD has introduced a 39% resident withholding tax rate for income over $180k per year. If this applies to you, you will need to change your RWT rate with us.

Please note, all interest payments from a call investment account or term deposit are taxed at a RWT rate that the interest recipient chooses, depending on their income or entity type. If you do not choose a rate, then the default rate of 33% applies. Please refer to ird.govt.nz to ensure you are using the correct rate. To update your RWT rate you can call us on (06) 370 0070 or email [email protected].