Resident Withholding Tax 

Resident Withholding Tax (RWT) is the tax that is deducted from any interest that you earn on investments, savings accounts etc.  This tax is deducted by the organisation or bank that holds your investment prior to the interest being paid to you.

At the end of the financial year, a tax certificate is issued from the organisation showing the amount of gross interest earned for the year and the amount of RWT deducted from it.  This information is then included in your end of year tax return.

If you are receiving interest from one of these organisations it is your responsibility to ensure that you have provided them with your IRD number and the RWT rate for these deductions to be made at. 

For more information on RWT, including the new rates from 1 April 2010, please visit the IRD website or give us a call.

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