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 dividend on direct investments are taxed.
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It is your assessment of the right marginal tax rate for income tax, and we ask you to provide this to Kernel upon account creation. 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.
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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%.
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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.

To change your RWT rate, please email support@kernelwealth.co.nz and we will change it for future tax calculations. We cannot refund over deducted tax, only Inland Revenue can do this as part of a tax return.

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