Registering as a portfolio investment entity (PIE)
How to register
To become a PIE you must satisfy the eligibility requirements and be able to register and file returns electronically (depending on the type of PIE you elect to become - see "PIE types" below).
You can complete the prescribed online registration here. Go to "Get it done online".
You do not have to have an online account to register as a PIE, but you will have to set one up to use the file transfer facility to file PIE returns.
Registration only takes a few minutes. Most registrations are accepted straightaway and we send you a letter of acknowledgement within 7 to 10 days.
However, if for any reason there is a problem with the information sent through the registration process may take longer.
If you are choosing to become a foreign investment PIE
| If you are ... | then you ... | Note |
|---|---|---|
|
not already registered as a PIE |
must complete the online registration process and select the appropriate foreign investment PIE type (zero-rate or variable-rate) |
You can become a:
A variable-rate PIE can make the election from 29 August 2011 with effect from 1 April 2012. |
|
already registered as a PIE |
need to contact our Large Enterprises unit and give them the:
|
|
Note
A foreign investment PIE cannot use the provisional tax option.
When registration as a PIE takes effect
Registration as a PIE takes effect from the later of:
- 1 October 2007
- the date of formation of the entity
- the date nominated in the registration as the "commencement date"
- the date 30 days before the day we receive the registration.
Registration as a zero-rate PIE takes effect from 29 August 2011.
Registration as a variable-rate PIE takes effect from 1 April 2012.
Example
Trust A is established on 1 December 2010. A registration is received on 1 February 2011 requesting a commencement date of 1 December 2010.
The election takes effect from 2 January 2010, 30 days before the date of receipt - this being later than the date of formation of Trust A and the commencement date nominated in the notice (both of which are on 1 December 2010).
Choosing the PIE types
There are several different types of PIEs that you can choose to become on registration. See the table below.
| Type | Description |
|---|---|
| Benefit fund | This type of PIE does not attribute income to investors. Therefore the benefit fund PIE cannot calculate its tax liability using the PIRs. Tax for a benefit fund PIEis at the basic income tax rate currently applying to the fund. Where a fund is both a defined benefit and defined contribution fund (known as a hybrid fund) the entity needs to choose one of the other types of PIE. |
| Custodian (PIP) | A custodian is an intermediary nominee or agent. Investors can invest through the custodian into a PIE. The custodian takes on the PIE obligations on its investors' share of the income from various PIEs. A custodian is also known as a wrap account or a PIE investor proxy (PIP). |
| Land | The land type applies to a PIE with more than 50% of the value of one of its classes of investments in land. This type of PIE must apply the loss offset rule. The losses from the land class can only be offset against income from that same land class. |
| Life fund | This is a type of PIE that is a separate identifiable fund, forming part of a life insurer that holds investments subject to life insurance policies under which benefits are directly linked to the value of the investments. |
| Listed | This type of PIE is known as a listed PIE, and is required to continue to file income tax returns. An eligibility requirement for a listed PIE is that the company be listed on a recognised exchange in New Zealand. Also includes companies that are going to become listed companies. Does not include a company choosing to be a multi-rate PIE. |
| Retail | This is a general type of PIE that meets the standard requirements and is not covered by any of the abovementioned types. |
| Superannuation fund | A superannuation PIE attracts investments savings for retirement purposes. This type of PIE covers general retirement schemes. |
| Variable-rate | This is a type of foreign investment PIE that can have both offshore-sourced investments and New Zealand-based investments. The PIE applies set tax rates to the various income sources and types. |
| Wholesale | A wholesale PIE has investors that are themselves PIEs. The wholesale PIE may attribute all its income to other PIEs. This would result in no PIE tax to pay for the wholesale PIE. |
| Zero-rate | This is a type of foreign investment PIE that basically only has offshore-sourced income and a small amount of New Zealand-based funds. |
Date published: 11 Oct 2011
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