Resident Withholding Tax (RWT) is a tax deducted on interest
earned from investments and bank accounts. The investment
organisation or bank deducts this tax when they credit interest to
you.
Companies may also deduct RWT 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 rate used will vary for individuals and different types
of business entity.
For more information on RWT, the tax rate and how this tax
applies to interest and dividends refer to the IRD
website