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Deducting Residential Land Withholding Tax - IR 1095

This factsheet helps to work out whether a taxpayer is a residential land withholder, if a taxpayer needs to deduct residential land withholding tax (RLWT) from a residential land sale or disposal and income tax obligations.

Property Tax Accountant NZ

RLWT may need to be deducted from residential land sales or disposals where a sale amount is paid/payable on or after 1 July 2016. The person that withholds the deduction is called a “withholder”.

RLWT generally needs to be deducted when

  • the property being sold or disposed of is located in New Zealand and meets the definition of “residential land”;
  • the vendor is an offshore RLWT person (this is a new definition and differs from the definition of offshore persons for IRD number applications), and
  • land transaction is taxable under the bright line test.

There are certain RLWT exclusions, including relationship property and RLWT certificate of exemption.

You can find more about bright line test here.

Deducting Residential Land Withholding Tax – IR 1095

IR 1095

Please note the guide(s)/form(s) were the latest version at the time this web page was finalised. If you need the latest form/guide, please visit IRD’s website at here.

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