Quick refund - eligibility, documentation, deadlines - New Zealand debt securities

04.10.2016

Who can apply for a quick refund?

A quick refund of withholding tax on interest from New Zealand debt securities is available through Clearstream Banking for eligible beneficial owners (who have not obtained relief at source) as follows:

Standard debt securities (NRWT regime):

Eligible beneficial ownersRate applicable at source
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
Tax-exempt beneficial owners0%

Government debt securities (Approved Issuer Levy regime):

Eligible beneficial ownersRate applicable at source
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
Non-resident beneficial owners requesting the Approved Issuer Levy regime0%
Tax-exempt beneficial owners0%

Corporate debt securities (Approved Issuer Levy regime):

Eligible beneficial ownersRate applicable at source
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
Non-resident beneficial owners requesting the Approved Issuer Levy regime2%
Tax-exempt beneficial owners0%

Qualified corporate debt securities (Approved Issuer Levy regime):

Eligible beneficial ownersRate applicable at source
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
Non-resident beneficial owners requesting the Approved Issuer Levy regime0%
Tax-exempt beneficial owners0%

Documentation requirements

Documentation requirements vary according to the regime applicable to the debt securities and to the type of beneficial owner, as follows:

Debt securities governed by the Approved Issuer Levy regime:

  • Non-resident beneficial owners requesting the Approved Issuer Levy regime:
    • Breakdown of Holding with request for Quick Refund;
    • One-Time Certification for New Zealand Government Debt Securities and other New Zealand Domestic Debt Securities governed by the Approved Issuer Levy regime.
  • Tax-exempt beneficial owners:
    • Breakdown of Holding with request for Quick Refund;
    • One-Time Certification for New Zealand Government Debt Securities and other New Zealand Domestic Debt Securities governed by the Approved Issuer Levy regime;
    • Certificate of Exemption.
  • Non-residents of Double Taxation Treaty (DTT) countries requesting NRWT:
    • Breakdown of Holding with request for Quick Refund;
    • One-Time Certification for Non-Resident Withholding Tax (NRWT) Regime on New Zealand Domestic Debt Securities;
    • Certificate of Residence (upon request);
    • Any other tax documentation required from time to time (upon request).

Standard debt securities governed by the Non-Resident Withholding Tax (NRWT) regime:

  • Residents of Double Taxation Treaty (DTT) countries:
    • Breakdown of Holding with request for Quick Refund;
    • One-Time Certification for Non-Resident Withholding Tax (NRWT) Regime on New Zealand Domestic Debt Securities;
    • Certificate of Residence (upon request).
  • Tax-exempt beneficial owners:
    • Breakdown of Holding with request for Quick Refund;
    • One-Time Certification for Non-Resident Withholding Tax (NRWT) Regime on New Zealand Domestic Debt Securities;
    • Certificate of Exemption.

Form descriptions are presented according to the procedures available for relief and/or reclaim of withholding tax on income from New Zealand debt securities.

Deadlines for receipt of documents

Documentation for a quick refund of withholding tax on interest on New Zealand debt securities must be received by Clearstream Banking by the following dates:

DocumentDeadline for receipt by Clearstream Banking
Breakdown of Holding with request for Quick RefundTen business days before the end of the financial year by 10:00 CET (NZ financial year is 1 April - 31 March).
One-Time Certification for NZ Government Debt Securities and other NZ Domestic Debt Securities governed by the Approved Issuer Levy regimeTen business days before the end of the financial year by 10:00 CET (NZ financial year is 1 April - 31 March).
One-Time Certification for Non-Resident Withholding Tax (NRWT) Regime on New Zealand Domestic Debt SecuritiesTen business days before the end of the financial year by 10:00 CET (NZ financial year is 1 April - 31 March).
Certificate of ExemptionTen business days before the end of the financial year by 10:00 CET (NZ financial year is 1 April - 31 March).
Certificate of ResidenceUpon request.

N.B.:For Government debt securities under the Approved Issuer Levy regime, the New Zealand Central Securities Depository (NZCSD) charges a fee for any tax adjustments received by Clearstream Banking after the record date. This fee will be passed on to customers who send late instructions.

When are refunds received?

The estimated time for receiving a refund from a quick refund application received before the 10th calendar day of the month following the interest payment by 10:00 CET is approximately one week from the date of receipt of the quick refund application.

The estimated time for receiving a refund from a quick refund application received after the 10th calendar day of the month following the interest payment by 10:00 CET may take longer than one week.