It’s important that your RWT rate is correct, particularly for investing in Term Deposits (TDs).
Follow these simple steps to confirm you have provided the correct RWT for your InvestNow portfolio.
Select the “Profile”icon:
Select the “Edit” link for Investor Details:
Update the RWT rate if needed. If you are not sure what the rates of RWT are, we have an FAQ for that, including a link to the IRD for more information.
In September 2013, in response to growing concerns about offshore tax evasion, G20 leaders announced an initiative to implement a new global Standard for Automatic Exchange of Financial Account Information in Tax Matters (in short, Automatic Exchange of Information, or AEOI).
AEOI impose these obligations on jurisdictions and financial institutions (for AEOI purposes, known as reporting financial institutions):
InvestNow produces a consolidated tax report which includes FIF calculations (FDR and CV methods) where required, and a summary of other taxable income including listed PIE dividends and term deposit interest. Note that a tax report is not provided for investors who only have holdings in PIE funds and do not have a zero PIR, as PIE tax is a final tax and so this information is not required for your tax return.
The InvestNow Tax Summary Report is a tax summary in order to assist the investor or their accountant […]
If you have any outstanding tax liability payable at the end of the tax year, we will pay this to the IRD on your behalf.
Prior to the PIE tax year end, we will send you an e-mail with a provisional calculation of your tax obligation. This will be followed by another email in early April once the final PIE calculations have been completed. After around a week, we will debit your InvestNow transaction account for the amount of PIE tax payable. However, if you do not have sufficient funds available […]
At the time you sell any units in a PIE managed fund or at PIE tax year end (31st March) your PIE tax liability will be paid by InvestNow on your behalf and returned to the IRD.
For Australian-domiciled managed funds which are not PIEs, InvestNow does not pay tax on your behalf and you need to report income from these funds on your tax return. Your Tax Summary Report will contain a summary of the taxable income from these funds including both the Fair Dividend Rate (FDR) and […]
You can find out more on the IRD website.
The current company tax rates are:
You can find out more on the IRD website.
The current rates of RWT are:
You can find out more on the IRD website.
Resident Withholding Tax (RWT) is a tax deducted from the gross amount of interest paid to you. It is deducted at the time when the interest is paid to your InvestNow cash account.
When you open an InvestNow account, you will be asked to select your RWT rate and IRD number.
If we do not have an IRD number your account will be taxed at the maximum “non-declaration” rate of 33%.
How do I determine my correct PIR?
You can find out more on the IRD website.
Currently, for resident New Zealand individuals, your PIR can be determined as follows:
Taxable income of $14,000 or less:
If, in either of the previous two income years your taxable income was $14,000 or less, and when combined with your PIE income or loss was $48,000 or less in the income year, then your PIR is 10.5%
If, in either of the previous two income years your taxable income was $14,000 or less, and when combined […]