When you're an offshore RLWT person you'll have RLWT deducted from your property sale. Your withholder will deduct this for you.
You may be able to get an exemption from paying the RLWT. This means your withholder will not deduct RLWT from your residential property sale.
Who can get the RLWT exemption
You may get an RLWT exemption if you're a developer and have:
- provided an acceptable security to us
- met all your tax obligations.
You may also get an exemption if you're selling a property eligible for the main home exclusion under the bright-line test.
Different criteria apply for the main home exclusion depending on when you sell the property. You must be eligible for the main home exclusion in full.
Exclusions to the bright-line test
Applying for an RLWT exemption
If you can get the RLWT exemption, you'll need to apply before the settlement.
Applying for a RLWT exemption for subdivisions
Applying for a RLWT exemption for subdivisions is different. If you've subdivided or you're going to, you apply for each individual piece of subdivided land. You can do this by either using:
- one Application for exemption from residential land withholding tax - IR1103 outlining all pieces of land the exemption applies to
- separate IR1103 forms for each piece of land.
For each piece of subdivided land, it will need its own Certificate of Title. If you do not have this, you'll need to include a copy of:
- the subdivision plan, for example, master, sale or survey plan
- any other supporting documents outlined on the IR1103.
In your application, you'll need to include the subdivision plan or other supporting documents outlined above. These should outline the allocated number or letter of the individual piece(s) of land. These are the ones the exemption is being applied for.