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Flowchart determining NRWT liability

This is a flowchart to determine whether New Zealand residents who borrow money from Australian financial institutions to buy residential investment properties in Australia are liable for non resident withholding tax on the interest payable.

The deciding factors are whether the:

  • Australian lender has a branch in NZ
  • New Zealand resident has in Australia:
    • a property manager
    • a fixed establishment (carrying on the business of leasing)
    • a dependent or independent agent.

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