Resident withholding tax (RWT) is a tax deducted from investment income before the investor receives it. The RWT deducted is then credited against the investor's tax payable.
A company must deduct RWT at the time it pays shareholders a dividend. For this purpose, "pay" means:
- to distribute to
- credit to an account
- to deal with in a person's interest, or on behalf of that person.
The current rate for RWT on dividends is 33 cents in the dollar.
RWT on dividends must be paid to us by the 20th of the month after the month in which the dividend was paid.
To make a payment, use the correct payment form:
- an IR17P for RWT on specified dividends, or
- an IR4K for RWT on all other dividends.
For more information on RWT on dividends see the Resident withholding tax on dividends guide (IR284).