Terminal Tax

Terminal Tax is the final amount of tax that you are required to pay at the end of the year. It is calculated as the difference between your calculated income tax liability less tax credits and provisional tax.

Resident Withholding Tax (RWT)

Resident Withholding Tax (RWT) is a tax deducted on interest earned from investments and bank accounts. RWT is deducted at the time the interest is paid to you.

Companies may also deduct withholding tax from dividends paid to shareholders.

If you receive interest as income you need to:

• Provide the entity you earn interest from with your IRD number, and
• Advise the applicable tax rate at which RWT is to be deducted at

For more information call NUMB1Z Ltd or Refer to RWT, the tax rate and how this tax applies to interest and dividends on the IRD website

Tax Credits (formerly Rebates)

Tax credits can be claimed by individuals who:

• Earned taxable income during the period being claimed for; and
• Were in New Zealand at any time during the tax year (including non-residents)

You may qualify for a tax credit for:

• Donations made of $5 or more to an approved charity – Claimed up to the lesser of 33.33% of the total donation or 33.33% of your taxable income

For further information call us or refer to tax credits section on the IRD website.