The reporting requirements for investment income are changing. Payers of investment income can keep using the existing rules until 1 April 2020. All businesses and organisations will need to follow the new rules from that date.
Businesses and organisations that are registering for the first time may want to follow the new rules immediately to save having to change systems and processes on 1 April 2020.
You will need to register as a payer of resident withholding tax through myIR. Once you are registered you will need to elect into the new investment income regime.
This page describes the new requirements.
Interest payers do not need to withhold tax on interest they pay if:
- the interest is on funds that do not generate taxable income
- the amount of interest paid to generate taxable income is less than $5,000.
If this applies to you, the following information is required for each of the income recipients who received interest:
- their name
- their contact details
- the amount and type of interest paid to them.
If it is available, you need to provide the following information for each of the income recipients who received interest:
- their IRD number or foreign equivalent
- their date of birth.
You must provide the name of any joint owners. If held, you also need to provide the following information for any joint owners:
- their IRD number
- their date of birth
- their contact address.
You will need to report this electronically unless you have an exemption.
This is all due when you file your income tax return.