Changes to New Zealand tax laws about investment income come into effect on 1 April 2020. We have summarised below the impact of these tax changes on you with respect to your HSBC account. For more detailed information on the changes, please visit the IRD’s webpage.
If you receive investment income from HSBC, some of these changes may affect you as follows:
- You must provide your IRD number to HSBC to make sure you are on the right tax rate. If you have not provided HSBC with your IRD number, a new non declaration rate of 45% for resident withholding tax (RWT) applies to all interest paid on your investment income earned from us from 1 April 2020.
- HSBC will no longer provide annual RWT certificates unless you have not provided your IRD number to us and the gross domestic interest paid on your investment income exceeds NZ$50 during the tax year. The information previously contained in the annual RWT certificate will be available electronically through myIR on Inland Revenue’s website.
- HSBC will no longer require you to provide us with a certificate of exemption for RWT from 1 April 2020. Instead, you will need to notify us of your RWT exempt status so we can verify your status on the electronic RWT exempt status register. You will also need to notify us when you RWT exempt status changes.
Where to go for further information
Further information can be found on the IRD website. If you need to update your details, please either
speak to your Relationship Manager or call our 24/7 contact centre on 0800 02 80 88 if calling within New Zealand, or on +64 9 368 8557 if calling from outside of New Zealand (international toll charges apply).
Note: HSBC NZ does not provide tax advice. We recommend you obtain independent tax advice for your own circumstances.
