Your Resident Withholding Tax (RWT) is the tax rate at which interest earned on savings is deducted, the same as for any bank interest or dividends on direct investments are taxed.

Your RWT rate is your assessment of the right marginal tax rate, for income tax and is chosen by you. It's based on your estimate of your total income in the current financial year (1 April to 31 March).

We will ask you to provide this when setting up a Kernel account. If inputted incorrectly, you will likely have tax to pay or a refund due in your tax return. There may also be penalties enforced by Inland Revenue to you if this is significantly underestimated.

For more information, please read the Inland Revenue's FAQ here.

By contrast, any investment income in Kernel Funds will be taxed at your Prescribed Investor Rate (PIR), which is calculated differently to a maximum of 28%.

There is currently no capital gains tax in New Zealand, therefore you are only taxed on any income earned - from employment, interest earnt on savings, dividends from shares and any other sources. The amount you pay is determined by the amount of income you receive from these sources.

Step 1: Log into the Kernel platform.
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​Step 2: Navigate to your profile, by clicking the icon in the top right corner (usually with the initial of your first name showing).
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​Step 3: Select 'Profile & Settings'.
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​Step 4: Under the 'Profile' tab, scroll to the bottom and update the appropriate field with your desired RWT rate.

Please note: A limitation of our joint, trust and company accounts is that you aren't able to update your PIR & RWT rates via the Kernel platform. You will need to email our team at support@kernelwealth.co.nz for us to update this information in our system.