Companies

You must notify your interest payer that you're a company.

If you've given your interest payer your IRD number and company status, you may use either the 28%, 33% or 39% rate. If you do not choose a RWT rate, tax will be deducted at a rate of 28% from interest paid to you.

If the RWT rate you choose does not match your income tax rate you may receive an end of year tax bill.

There are 2 exceptions.

Trustees are not required to notify their company status and may use the 17.5%, 30%, 33% or 39% rate. If you are a trustee of a testamentary trust, you may use the 10.5%, 17.5%, 30%, 33% or 39% rate.

Māori authorities are not required to notify their company status and may use the 17.5%, 30%, 33% or 39% rate.