• Home
  • Banking
  • Personal Loans
  • Insurance
  • About Us
  • Contact
  • Internet Banking Login
  • Apply for a loan

  • Posted on January 29, 2020

    IRD Tax Rate Changes

    As from 1st April 2020, the IRD has increased the ‘non-declaration’ rate for Resident Withholding Tax (RWT) to 45%. This means that if you have not given us your IRD number all Dividend/Interest payments will have tax deducted at this rate 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% and 33% and should match your income tax rate. If the RWT rate does not match their income tax rate you may receive an end-of-year tax bill. For information purposes, the following are the income brackets with appropriate tax rates:

    Total taxable income

    RWT rate

    Up to $14,000

    10.5%

    $14,001 to $48,000

    17.5%

    $48,001 to $70,000

    30%

    Over $70,000

    33%

    To ensure that you are not being overtaxed, please contact us at messages@nzcuauckland.co.nz with your Member number, IRD Number and income tax rate.