How is NRWT calculated? & Other administrative issues
How is it calculated?
The rates at which NRPI (Non Resident Passive Income) is taxed are:
Section RF7 the amount of tax is calculated using the formula— payment × 0.15.
But New Zealand has DTA (Double Tax Agreement) with many countries, and most of the countries you are dealing with New Zealand would have DTA. In most cases DTA reduces the NRWT on interest to 10%.
How to pay?
If it more than $500 p.a it must be paid to the commissioner every month otherwise twice a year. (RF 13)
Who should pay?
As a payer of these payment it is your responsibility to deduct the tax and pay this to the commissioner, obligation arise at the time of payment (section RF3)