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Resident Withholding Tax on Interest (IPS): Reporting Guide

Fahim Kaidawala avatar
Written by Fahim Kaidawala
Updated over 2 weeks ago

Fund managers in New Zealand may need to submit investment income reports for various withholding tax types. The Inland Revenue Department (IRD) provides guidance on how to register and submit these reports using the myIR file upload service.

Caruso supports the following withholding tax reports:

  • Portfolio Investment Entity (PIE) attributed income

  • Dividend Withholding Tax (DWT)

  • Interest Pay As You Earn (IPS)

  • Non-resident Withholding Tax (NRT)


Submitting an IPS Report

The IPS report is required for payers who deduct resident withholding tax on interest from investors’ accounts, either on a recurring monthly basis or as needed. The return must be filed by the twentieth day of the month following the month in which the income was paid.


Step 1: Generate and Submit an IPS Report

  • Contact Caruso to request the “All Distribution Detail Report”.

  • This report will soon be available for direct download within Caruso.


Step 2: Access the IPS Converter

  • Go to the File Converter section of the admin application.

  • Select IPS Converter.


Step 3: Upload the Report

  • Upload the “All Distribution Detail Report” to the IPS file converter.

The IPS Converter will:

  • Filter for eligible income. This looks at:

    • Distributions earned during the selected period for tax filing (using the Distribution From date) and,

    • Distributions classified as Interest Income where resident withholding tax (RWT) has been withheld.

  • Summarise eligible income per investing entity and per fund.

  • Produce one output file per fund, ready for submission.


Step 4: Provide Additional Required Details

  • Enter information not stored on Caruso, including:

    • Interest payer IRD number

    • Contact details for the payer

    • Caruso will use the fund name as the payer name

  • These details can be entered directly within the file converter.


Step 5: Download

  • Download the completed IPS report file or files.

  • Caruso will generate one file per fund for filling.

  • Caruso generates the file name as Fund ID - Fund Name - Filling Period


Tips: For more guidance, refer to the IRD’s official instructions or contact your tax advisor.


If you have any questions or need help at any stage, please contact our Caruso Support team either by email or live chat.

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