Understanding resident withholding tax (RWT)
A Resident Withholding Tax (RWT) is a tax that is deducted from the interest that you, as a New Zealand resident, earn from BNZ.
It includes interest you earn on any BNZ deposit accounts you hold, including savings accounts and term deposits.
The RWT rate is based on your taxable income.
If you are not a New Zealand resident, you may be on a different tax rate. Find out more about Non-resident withholding tax (NRWT) and Approved issuer levy (AIL).
Resident withholding tax (RWT) rates
Your resident withholding tax (RWT) rate is based on your taxable income, and there are different rates for individuals, trusts, companies and partnerships. You can find the current RWT rates on the Inland Revenue (IRD) website.
You should provide us with or change your RWT rate that’s appropriate to your level of taxable income. Selecting a rate that is too low may mean you have an end of year tax liability.
You should also provide us with your IRD number. If you do not provide us with your IRD number, we are required to deduct RWT at the non-declaration rate of 45%.
Residents withholding tax (RWT) rate exemptions
You can find out if you’re exempt from resident withholding tax (RWT) on the Inland Revenue (IRD) website. If you qualify for an exemption, you’ll need to provide us with a copy of a current Certificate of exemption, which you can drop off at any one of our branches, or post us a copy.
If you’re not exempt from RWT and you do not provide us with both your RWT rate and your IRD number, BNZ is required to deduct RWT at the highest rate.
The IRD may direct us to apply a different RWT rate to the rate notified by you, and if so, we’re required to comply. If this occurs, the IRD will contact you directly.
For more information on applying for a resident withholding tax exemption, visit the Inland Revenue (IRD) website.
Important: The information on this page is general in nature and does not constitute specific tax advice to any person. To the extent that any such information constitutes financial advice, it does not take into account any person's particular financial situation or goals. We recommend you obtain independent tax advice for your own circumstances. BNZ does not accept any liability for the use of, or reliance on, this information.