Resident Withholding Tax (RWT)

Resident Withholding Tax (RWT) is a tax deducted on interest or divdends earned from investments such as shares and bank deposits. The payer deducts this when they credit the income to you.

Close companies must also deduct withholding tax from dividends paid to shareholders.

If you receive interest as income you need to:

  • Provide the interest payer with your IRD number, and
  • Elect the tax rate at which this is to be deducted by them

The RWT tax rate to use will be the individuals marginal tax rate or will depend on the type of business entity.  See here for further details.

For more information on RWT, the tax rate and how this tax applies to interest and dividends refer to the Inland Revenue website

 

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