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

04.10.2016

Who can apply for a standard refund?

A standard 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 or a quick refund) as follows:

Standard debt securities (NRWT regime):

Eligible beneficial ownersEffective rate of tax
after refund a
Tax refund available b
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
15% minus the
tax treaty rate
Tax-exempt beneficial owners0%15%

a. Expressed as a percentage of the gross interest amount.

Government debt securities (Approved Issuer Levy regime):

Eligible beneficial ownersEffective rate of tax
after refund a
Tax refund available b
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
15% minus the
tax treaty rate b
Non-resident beneficial owners requesting the Approved Issuer Levy regime0%15%
Tax-exempt beneficial owners0%15%

Corporate debt securities (Approved Issuer Levy regime):

Eligible beneficial ownersEffective rate of tax
after refund a
Tax refund available b
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
15% minus the
tax treaty rate b
Non-resident beneficial owners requesting the Approved Issuer Levy regime2%13%
Tax-exempt beneficial owners0%15%

Qualified corporate debt securities (Approved Issuer Levy regime):

Eligible beneficial ownersEffective rate of tax
after refund a
Tax refund available b
Residents of Double Taxation Treaty DTT countriesTax treaty rate or 15%,
whichever is lower
15% minus the
tax treaty rate b
Non-resident beneficial owners requesting the Approved Issuer Levy regime0%15%
Tax-exempt beneficial owners0%15%

Documentation requirements

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

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

  • Residents of Double Taxation Treaty (DTT) countries:
    • One-Time Certification for Non-Resident Withholding Tax (NRWT) Regime on New Zealand Domestic Debt Securities;
    • Breakdown of Holding with request for Standard Refund;
    • Certificate of Residence (upon request);
    • Credit Advice (upon request);
    • Any other tax documentation required from time to time (upon request).
  • Tax-exempt beneficial owners:
    • One-Time Certification for Non-Resident Withholding Tax (NRWT) Regime on New Zealand Domestic Debt Securities;
    • Breakdown of Holding with request for Standard Refund;
    • Certificate of Exemption;
    • Certificate of Residence (upon request);
    • Credit Advice (upon request);
    • Any other tax documentation required from time to time (upon request).

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

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

The statutory deadline for reclaiming withholding tax using the standard refund procedure is four years after the end of the tax year (1 April - 31 March) in which the income payment was made.

Documentation for a standard refund of withholding tax on interest from New Zealand debt securities must be received by Clearstream Banking at the latest two months before the statutory deadline.

When are refunds received?

The estimated time for receiving a standard refund is approximately three months from the date of receipt of the refund application.

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.