If you have successful investments (good for you!) you will have to declare the dividends as additional income. Money earned from investments is taxable - if you leave this undeclared, it will alert the IRD and that's a bad thing. You can easily declare this in your Hnry Dashboard, under 'Income Sources'.
There are several types of investments and corresponding tax liabilities, ranging from investments in stocks and funds, to property. Hnry will handle all of these taxes, but it's important you declare money coming from dividends on investments so we know how to handle your return. Here's a quick guide so you know what's up.
- If you have New Zealand shares that pay dividends, you will have to pay tax on those dividends
- Tax paid on dividends and interest from investments is subject to RWT (resident withholding tax), which Hnry deducts on your behalf
- Some dividends are attached to "imputation credits", which are in place to avoid double taxation in certain cases when companies have paid tax on their profits
- RWT may be deducted from a dividend to increase the imputation credit. See this article for more detail.
Feel free to contact firstname.lastname@example.org if you have any further questions regarding paying taxes from dividends.