From April 2020, taxpayers will be hit with a 45% "non-declaration rate" on interest and dividends if they fail to give the interest payer their IRD number.
The IRD has issued new guidance on resident withholding tax for interest and dividends from bank accounts and investments.
The rules are designed to ensure companies and individuals are paying the right rate and have notified their interest and dividend payer.
From April, individuals will face a 45% rate if they fail to notify the interest payer of their IRD number. If they provide their IRD number but forget to choose a resident withholding tax rate, they will be charged a default rate of 33%.
Meanwhile, companies that do not provide an IRD number will be charged a withholding tax of 33%. If companies provide an IRD number but do not pick a resident withholding tax rate, they will be charged a 28% tax on interest payments.
The full IRD guidance can be found here.
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