Do you need to update your RWT deduction rate?

From 1 April 2021 a new top tax rate of 39% was introduced for individuals who earn over $180,000 a year.

If you may earn over $180,000 in the 2021 – 2022 year, it is recommended that you update your RWT rate with your bank (you should be able to do this in online banking) and also, if applicable, contact your Investment Portfolio Manager and update the RWT rate for your investments (not the PIR which should remain at 28%)

For any dividends declared by your Company that we do the calculations for, we will apply the higher rate for DWT.

Even though the new rate applies from 1 April 2021 the option to increase it with banks and IRD has only recently been made available. Tax on some income may therefore have been under-deducted for part of the year which may create a terminal tax liability.