You can apply for an exemption from paying resident withholding tax (RWT) if you're a:
- amateur sports promoter
- Board of Trustees
- charitable organisation registered with Charities Services
- charitable estate
- community housing provider registered with the Community Housing Regulatory Authority
- community trust
- company that is a member of the Public Trust group, the Public Trustee or the Maori Trustee
- finance house or broker
- friendly society or credit union
- funeral trust
- gaming machine operator
- horse or greyhound racing club
- improvement or research promoter
- local or public authority
- local or regional promotion body
- not-for-profit organisation
- portfolio investment entity (PIE)
- public purpose Crown-controlled company
- registered bank or building society
- statutory trustee company
- tertiary education institution.
Charitable organisations on the Charities Services register do not need to apply. You will be given RWT exempt status and added automatically to the RWT exemption register.
You can also apply if you:
- have earned or think you'll earn more than $2 million a year
- can prove you’ll have losses, or a resident withholding tax refund, of $500 or more
- are exempt from paying tax under an Act other than the Tax Acts.
We'll tell you if your application is approved and your IRD number added to the RWT exemption register.
Tell your payer (bank or fund manager) if you have an exemption, and if applicable, what the expiry date is.
When we can cancel your exemption
We might cancel your certificate of exemption if you:
- gave misleading information in your application
- no longer meet the conditions it was issued for
- do not meet the $2 million target (if applicable) or give us satisfactory evidence of your income
- do not pay your income tax by the due date.
We'll tell you if you we cancel your exemption. You'll need to tell your payer within 5 working days.