NEWS

It's important to keep your financial matters in order. One crucial aspect is ensuring that your IRD number is supplied to all entities from which you receive interest or dividends. This small but vital step can significantly impact the efficiency of managing your financial records. Here’s why providing your IRD number is essential.

 

Avoid the 45% Tax Withholding Rate

When you open a bank account or invest in a product that generates interest, you are required to supply your IRD number. If you fail to do so, banks and financial institutions are obligated to withhold tax at a punitive rate of 45%.

This is considerably higher than the standard Resident Withholding Tax (RWT) rates, which vary based on your income and tax residency status. Overlooking this step can result in an unnecessarily high tax burden on your investment income, reducing your overall returns.

 

Streamlining Financial Management

When your IRD number is correctly recorded, it simplifies your job as you won’t be hunting for the missing investment statements. Accurate recording of your IRD number by banks and financial institutions means that all your interest and dividend income is automatically reported to the IRD.

This makes it easier for us to reconcile your income and ensure that your tax return is accurate and complete. It also reduces the likelihood of discrepancies or the need for manual corrections, saving time and reducing stress for both you and our team.

 

What You Need to Do

To ensure you are taxed correctly and to make our job more efficient, please take the following steps:

1. Check Your Records - Verify that your IRD number is correctly supplied to all banks and financial institutions where you have accounts or investments.
2. Update Your Information - If you find that your IRD number is missing or incorrect, contact the respective institutions to update your records immediately.
3. Inform Your Accountant - Let us know if you encounter any issues or need assistance in ensuring that your IRD number is properly recorded.

 

By taking these simple steps, you can ensure accurate taxation, and help us provide you with the best possible service. Your cooperation is greatly appreciated and will go a long way in keeping your financial affairs in order.

For any questions or assistance, please feel free to contact our team. We are here to help you ensure that your financial interests are protected.

Thank you for choosing our accounting firm to handle your financial needs. We look forward to continuing to serve you with excellence and dedication.

 

Disclaimer

This information is intended to provide general advice only. We recommend you discuss your specific situation with your Accountant.