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What is withholding tax?

Last Updated: 27 Jun 2017

Withholding tax is tax that is deducted from interest that you earn from ASB Bank. ASB Bank pays this tax to Inland Revenue on your behalf. The types of withholding tax are Resident Withholding Tax (RWT) and non-Resident Withholding Tax (NRWT). Approved Issuer levy may be paid as an alternative to NRWT.

If you hold an Inland Revenue certificate of exemption then withholding tax may not apply to you.

What is Resident Withholding Tax (RWT)?

Resident Withholding Tax is the tax deducted on interest paid to New Zealand tax residents on their deposit accounts. 

What is Non-Resident Withholding Tax (NRWT)?

Non-Resident Withholding Tax is the tax deducted on interest paid to non-New Zealand tax residents on their deposit accounts. 

What is Approved Issuer Levy (AIL)?

Approved Issuer Levy is a levy paid by non-New Zealand tax residents on their deposit accounts.

What is the default tax rate? 

If you are a New Zealand tax resident the default rate is 33%.  If you are a non-New Zealand tax resident the default rate will be the withholding tax rate for your chosen country of tax residence. 

Calculate what Resident Withholding Tax rate you should use.


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