Resident Withholding Tax (RWT) Changes
Further alignment of RWT rates deducted from interest earned on savings and investments took place on 1 October 2010. Further changes for companies will take place again on 1 April 2011.
The good news is that you are not required to do anything as the team at HBS Bank has automatically applied the following rate changes to affected accounts as at 1 October 2010. This means the tax you pay on interest earned may have changed from this date.
Please note that RWT is calculated and deducted at the rate applicable on the date interest is paid/credited, so interest payments made during the period 1 April 2010 to 30 September 2010 will have the rates up to 30 September 2010 applied. While interest paid on or after 1 October 2010 will have the new RWT rates applicable from 1 October 2010 applied. For companies the further RWT rate change will also be applied to any interest paid on or after 1 April 2011.
The Inland Revenue has a guide with questions and answers on the RWT rate changes, which is available on their website www.ird.govt.nz/forms-guides. If you are unsure of what your own RWT rate should be, we recommend you contact your tax professional for advice.
Income Thresholds |
Previous personal RWT rates up to
30 Sept 2010 |
New personal RWT rates from
1 Oct 2010 |
$0-$14,000 |
12.5% |
10.5% |
$14,001-$48,000 |
21% |
17.5% |
$48,001-$70,000 |
33% |
30% |
More than $70,001 |
38% |
33% |
Default rate if no IRD number provided |
38% |
33% |
Certificate of exemption is provided |
0% |
0% |
Please contact us if:
You know that your current RWT rate is not the correct rate for you, and you wish to advise the correct rate. If you are unsure we recommend you contact your tax professional for advice.
What you need to tell us
- Your Account Number
- Your IRD Number. Please contact the IRD on 0800 377 774 if you do not know your number
- Your correct RWT rate
How to update your rate
- Call us on 0800 427 2265
- Visit any HBS Bank branch
- Email us your new RWT rate via info@hbsbank.co.nz
- Write to us at HBS Bank, PO Box 10, Hastings 4156