Posted on January 29, 2020
2021 IRD Tax Rate Changes
As from 1April 2021, the IRD has made a further change to the RWT tax rates by introducing an additional category but retaining the ‘non-declaration’ rate for Resident Withholding Tax (RWT) at 45%. This means that if you have not given us your IRD number all Dividend/Interest payments will have tax deducted at 45% automatically.
If you have given us your IRD number but have not chosen an RWT rate, tax will be deducted at the ‘default’ rate of 33%. RWT rate options are 10.5%, 17.5%, 30%, 33% and 39% and should match your expected income. If the RWT rate does not match the rate listed below you may receive an end-of-year tax bill. The following are the income brackets with the tax rate that applies to each:
Total taxable income | RWT rate |
Up to $14,000 | 10.5% |
Over $14,000 and up to $48,000 | 17.5% |
Over $48,000 and up to $70,000 | 30% |
Over $70,000 and up to $180,000 | 33% |
Over $180,000 | 39% |
To ensure that you are not being overtaxed, please email us at enquiries@nzcuauckland.co.nz giving us your Member number, IRD number and correct RWT rate.