New Zealand: Domestic Corporate Taxation
Resident withholding tax (RWT) is generally required to be deducted from payments of dividends and interest to New Zealand residents. RWT rates applicable from April 1, 2010 for individual investors are equivalent to the marginal personal income tax rates, and for corporate investors are equal to the 30% corporate income tax rate from April 1, 2011 (33% for previous years).
If the individual or corporate investor does not provide an IRD number to the payer, the RWT is to be withheld at 38%. The obligation for collecting the tax is placed on the person making the payment.
Non-resident withholding tax (NRWT) must be deducted from payments of interest, dividends and royalties made to non-residents. The NRWT rate on dividends is 30% (to the extent not fully imputed) and 15% on interest and royalties, although the rates may be reduced through the operation of double taxation treaties. New Zealand has tax treaties with 37 countries (2012).
Fringe benefits tax is payable in respect of employee benefits, such as the private use of company cars, loans, subsidised transport, medical insurance and travel, while employers’ contributions to superannuation will also be required.