As a resident of NZ, if you have a rental property with a mortgage you could be liable to pay Non-Resident Withholding Tax (NRWT) to Inland Revenue on the mortgage interest.  A liability to NRWT depends upon if your bank has a branch in NZ or you have a permanent establishment in the overseas country where the mortgage was taken out. Contact us if you believe you have or need assistance with your NRWT obligations.

As an alternative to NRWT, you can register as an Approved Issuer in NZ and register your mortgage for Approved Issuer Levy (AIL) as this generally is cheaper than paying NRWT.  Registering and paying AIL cannot be backdated and therefore you should register as soon as possible otherwise NRWT is payable. For any assistance with AIL please contact us.