Equities - rates, eligibility, availability of relief etc. - New Zealand

30.09.2013

Withholding Tax

Standard rate of withholding tax:0% / 15% / 30%Holding requirements / restrictions:Yes

The standard rate of Non-Resident Withholding Tax (NRWT) on dividends from New Zealand equities is 30% for beneficial owners who are non-residents of New Zealand.

Under New Zealand tax legislation, several types of tax credit can be attached to a dividend payment, depending on the type of income and, as a consequence, dividends can be distributed as follows:

  • From ordinary equities:
    • Unimputed - subject to the standard rate of 30% withholding tax - certification required from the customer to obtain reduced tax rate;
    • Partially Imputed - subject to the standard rate of 30% withholding tax, but only for the unimputed portion of the dividend, the remainder being taxed at 15% - certification required from the customer to obtain reduced tax rate;
    • Fully Imputed – subject to 15% withholding tax, regardless of country of residence - no action required by the customer to ensure that this reduced rate is applied.
    • Supplementary - subject to 15% withholding tax, regardless of country of residence - no action required by the customer to ensure that this reduced rate is applied.
  • From Portfolio Investment Entity (PIE) equities:
    • Unimputed - subject to the standard rate of 0% withholding tax, regardless of country of residence - treated as excluded income;
    • Fully Imputed – subject to 15% withholding tax, regardless of country of residence - no action required by the customer to ensure that this reduced rate is applied.
    • Supplementary - subject to 15% withholding tax, regardless of country of residence - no action is required by the customer to ensure that this reduced rate is applied.

Availability of relief

Click on the zoom icon for a larger view of the diagram showing the availability of relief at source and/or reclaim of withholding tax on income from New Zealand equities.


Eligible beneficial ownersRelief at sourceQuick RefundStandard Refund
Residents of Double Taxation Treaty (DTT) countriesYesYesYes
Tax-exempt beneficial ownersYesYesYes

Relief at source of withholding tax is available only if the appropriate documentation is submitted to Clearstream Banking.

A quick refund is available if relief at source has not been obtained by a beneficial owner eligible for exemption.

A full standard refund is available if relief at source or a quick refund has not been obtained by a beneficial owner eligible for exemption. The customer can reclaim withholding tax on behalf of the beneficial owner through Clearstream Banking by submitting the appropriate documentation.

Note: New Zealand equities may not be held in Clearstream Banking on behalf of beneficial owners that are New Zealand residents for tax purposes. Customers are responsible for ensuring compliance with this restriction.