Resident Withholding Tax

Last updated: 05/08/2020 05.08 PM

What is Resident Withholding Tax?

Resident Withholding Tax (RWT) is a tax that ANZ has an obligation to withhold from certain payments of investment income - including interest or dividends - to New Zealand resident customers or third parties. Any RWT withheld by ANZ is paid to Inland Revenue on the recipient’s behalf.
 
The rate at which RWT is deducted from interest will depend on the tax rate that the recipient of the payment has elected, and that is recorded by ANZ, at the time the interest payment is made. The elected RWT rate, of either 10.5%, 17.5%, 28%, 30% or 33%, should be consistent with the recipient’s income tax rate. When no RWT rate is elected and the recipient has provided their IRD number, a default rate of 33% (28% for companies) will be applied by ANZ. If the recipient does not provide ANZ with their IRD number the RWT non-declaration rate of 45% will apply.
In some circumstances a rate of 0% can be elected.

Please contact us if you would like to find out or change your elected RWT rate.

For more information visit the IRD website: http://www.ird.govt.nz/rwt/

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