Withholding Tax (WHT) is only collected when you make a full withdrawal from your Blossom account. The amount of WHT will be clearly displayed in your app when you request a withdrawal, so there are no surprises.

Withholding Tax (WHT) is only collected when you make a **full withdrawal** from your Blossom account. The amount of WHT will be **clearly displayed in your app** when you request a withdrawal, so there are no surprises.

Here’s an example to show how WHT could apply:

* Let’s say you invest **$1,000** and earn an assumed return of **5.70% p.a.** over one year.
* Your earnings could be approximately **$58.65**, bringing your total balance to **$1,058.65**.
* A maximum of **15% WHT** applies only to the **earnings** (not your total balance).
* So, **15% of $58.65 = $8.80** could be withheld and paid to the Australian Tax Office (ATO) on your behalf.

As a New Zealand investor, it is likely you can claim your WHT tax amount back through a foreign tax credit. For more information on claiming a tax credit, read [here](https://www.taxtechnical.ird.govt.nz/interpretation-statements/is-1605-income-tax-foreign-tax-credits-how-to-claim-a-foreign-tax-credit-where-the-foreign-tax-paid-).

This is a simplified example for illustrative purposes only and is not a guarantee of actual or future performance of any Blossom product. WHT is subject to applicable tax laws and individual circumstances. This is not tax advice. We recommend you seek your own advice from a tax professional.

 

How much Withholding Tax will I have to pay?

What are the tax implications?

What is Withholding Tax?

How will Withholding Tax be deducted?

Do I pay tax to the Australian Taxation Office or IRD?

What is a Foreign Tax Credit?

How do I apply for a Foreign Tax Credit?

What type of information will I get to assist me in completing my tax return?

What if I have closed my Blossom account but still need access to my statements?

Can I have help preparing my Capital Gains Tax Statement?

Taxes

Blossom App

Answers are general in nature only and do not take into account your personal objectives, financial situation or needs. Refer to the [PDSs](https://www.blossomapp.com/documents), [TMDs](https://www.blossomapp.com/documents) and [FAQs](https://www.blossomapp.com/documents) for further information.

How much Withholding Tax will I have to pay?

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How much Withholding Tax will I have to pay?

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