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Residential land withholding tax Tāke Rawa Kāinga

Claiming back residential land withholding tax

Find out what to do if you've sold a residential property and you've had too much residential land withholding tax (RLWT) deducted.

If you've had RLWT deducted you're entitled to claim this as a tax credit in your end-of-year tax return. If you think you've had too much RLWT deducted you may be able to claim it before the end of your income year.

Generally your withholder needs to have paid us the RLWT before you can claim it as a tax credit.

If your New Zealand tax obligations stop before the end of your income year

If you're a non-resident for tax purposes and:

  • the property sale is the only New Zealand tax obligation you'll have, or
  • you've stopped all New Zealand tax obligations

before your income year ends, you can file an income tax return to declare all income and expenses up to the date your obligations stopped.

Completing an income tax return before the end of the year

Make sure you use the most recent year's income tax return. You'll need to cross out the date on the form and write the dates the return covers, ie, 1 April to the date your obligations stopped.

If you have ongoing New Zealand tax obligations

If you've had too much RLWT deducted you might be able to claim a repayment of this amount, just complete a Residential land withholding tax repayment claim form (IR1102). This means you can claim the excess RLWT back before you file your end-of-year tax return. You'll still need to file an end-of-year income tax return.

Successful repayment claims

If your RLWT repayment claim is successful, the confirmation we send won't look like our standard notices of refund. Instead you'll be sent one of the following to let you know we're making the repayment:

  • a "remittance advice" if the repayment is direct credited to a bank account, or
  • an "invoice" with the RLWT tax type and your IRD number under "invoice number" if the repayment is sent by cheque.