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I have an investment in ANZ and every time I receive an interest payment there is a discount of 33% of withholding tax.

I have it for a while, the 33% quote doesn't vary with the amount of interest paid.

I would like to know more about this tax. I think an answer that comprises of the answers of these 3 questions should suffice:

  1. Does 33% look right?
  2. As a non-resident, do I have the right to get part of that back?
  3. When I get my residency, will it change?

Feel free to add more information :)

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    Are you sure you're non resident for tax purposes? If you're living in NZ for more than 183 days out of 365 you're a resident. It seems you're being charged the default rate because you have not provided a valid IRD number.
    – Boj
    Mar 19, 2015 at 5:18

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First you need to make sure you are non-resident for tax purposes. In New Zealand, if you have lived in the country for 183 days out of 365, you are considered a resident.

In any case you have to provide your bank with a valid IRD number, so your income can be reported to the taxation authorities. If you have not provided, your savings income will be taxed at the default rate of 33%.

As for getting this back, I believe the next time you lodge a tax return you would be refunded this amount if you are found to owe less tax than what you paid during the financial year.

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  • The bank relies on you telling them your residency status. If you're truly non-resident for tax purposes then the rate should be 10%. Adding to @CargoCult's comment on your question, resident for tax purposes is not necessarily the same as resident for immigration purposes.
    – tetranz
    Apr 10, 2015 at 17:07

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