Section RE 21 — Income Tax Act 2007: Basis for payment of RWT

RE 21 Basis for payment of RWT When this section applies (1) Subsections (2) to (5) apply for the purposes of section RA 6(1) (Withholding and payment obligations for passive income) to a person who is required under the RWT rules to withhold RWT for resident passive income consisting of interest. Interest of more than $500 in total (2) If the person estimates for a tax year that they will be required to withhold more than $500 in total for each month of the tax year, they must pay the amount of tax to the Commissioner on a monthly basis. Interest of less than $500 in total (3) If the person estimates for a tax year that they will be required to withhold less than $500 in total for each month of the tax year, they must pay the amount of tax to the Commissioner in 2 instalments as described in section RA 15 (Payment dates for interim and other tax payments). When subsection (5) applies (4) Subsection (5) applies when the person has withheld more than $500 in total amounts of tax for a 2 month-period from the start of 1 month in a tax year to the end of the month following that month. Total in 2-month period (5) Despite subsections (2) and (3), the person must pay the total amount of tax to the Commissioner for the 2-month period by the 20th day of the month following the end of the period. When subsection (7) applies (6) Subsection (7) applies for the purposes of section RA 6(1) to a person who is required under the RWT rules to withhold RWT for resident passive income consisting of a dividend, a replacement payment, or a taxable Maori authority distribution. Dividends, replacement payments, and taxable Maori authority distributions (7) The person must pay the amount of tax to the Commissioner on a monthly basis. Defined in this Act: amount of tax , Commissioner , dividend , interest , pay , replacement payment , resident passive income , RWT , RWT rules , tax year , taxable Maori authority distribution , Compare: 2004 No 35 s NF 4(1)–(5), (7), (8)