The Income Tax Act 2007 requires that RWT is deducted from any dividends paid unless one of the exemptions applies. Any RWT deducted is remitted to the Inland Revenue Department by the issuer and is available to you as a tax credit to offset against your residual tax liability in most circumstances.
Whether or not RWT is deducted, your overall tax liability remains the same. However, the deduction of RWT reduces the amount of any residual tax that you may be required to pay at the end of the financial year.
Please note: Invest Direct is unable to give advice on tax-related matters; we suggest you seek independent taxation advice from your tax adviser or accountant.
Why is Resident Withholding Tax deducted from dividends?
Written by Support Team