Use the New Zealand non-resident withholding tax (NRWT) - IR386 when a non-resident you paid needs:
- to know how much NRWT they have paid before the year-end
- a refund of NRWT.
You can only set up refunds for current clients. A client who is no longer yours will need to set up their own refund using the IR386.
The fastest way someone can get a refund is from you. You pay the recipient and use the IR386 to get it back from us.
Gather your information
You will need:
- income year covered
- recipient's full name, overseas address and postal address
- recipient's IRD number (if you know it)
- recipient's bank account number (if needed)
- gross and net non-resident passive income
- correct NRWT and the difference that will be refunded
- your own name, address, IRD number and bank account number (if needed).
Fill out the form
You will need a form for each person you're refunding.
Write us a cover letter
You’ll need to write us a letter that details the refund. This letter should be sent to us with the IR386 form. The letter should include:
- your details
- the details of who is owed a refund and their IRD numbers (if known)
- why a refund is needed.
We refund the overpaid amount
Usually the non-resident is refunded by you and we pay you back.
If the non-resident is not a client of yours anymore, we’ll refund into the account noted in the IR386.
We can also transfer credit from your account into theirs. They will need an IRD number and an account with us.
Send a client letter
You’ll also need to send a letter to people receiving a refund. Your letter needs to show the correct income and NRWT details for the income year covered.