What is Residential Land Withholding Tax and does it apply to you?

Residential Land Withholding Tax (RLWT) is a tax deducted from residential property sales if the following applies:

1. The property being sold is residential land in NZ.
2. The sale amount is payable or paid after 1 July 2016.
3. The seller:

1. Bought the property on or after 1 October 2015 through to 28 March 2018 inclusive and owned it for less than two years before selling; or
2. Bought the property on or after 29 March 2018 inclusive and owned it for less than five years before selling; and
3. Is an offshore RLWT person.RLWT does not apply to inherited properties, relationship property settlements or those who hold a certificate of exemption.
4. Any person or entity who falls within either 3(a) or (b) above will need to complete a RLWT declaration to identify whether 3(c) applies and if RLWT therefore needs to be deducted