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Industry guidelines
Nga aratohu ahumahi

Foreign investment PIE investor certificates IR854

Return detail requirements

The following tables sets out the return details requirements for the investor certificates.

Important

It is critical that the investor certificates record the correct portfolio investment entity (PIE) IRD number. Without this number the investor certificates cannot be attached to the annual reconciliation.

If the PIE's IRD number is omitted or not correct on the investor certificates they will not be attached to the reconciliation and the PIE will be asked to re-submit the certificates.

Return identification and version number

There are additional data fields that are not part of the return but are used to identify the type of message.

If the return type or version is ... then for file transfer (CSV) this is the ... and for B2B this is the ...
IR854 first field root element.
eg 0004 for foreign investment PIEs from 29 August 2011 second field first field.

For PIEs that are not foreign investment PIE you can use version 0003 of the certificate.

Important

Make sure that the PIE IRD number and return period are correct

Certificate IR854 new requirements for notified foreign investors

A new certificate is required for each change of country during the tax year.

The PIR at year end is 99.99 for double tax agreement (DTA) and 90.00 for non-DTA countries on the IR854

Part A

Note the additional investor level details are contained in Part E

Requirement Description
PIE name Name of the PIE or PIE investor proxy (PIP).
PIE IRD number IRD number of the PIE or PIP.
Period end date Annual return 31 March CCYY. This is always to the year ended 31 March regardless of balance date or cease date.
Investor's name The full name of the investor. Do not include commas.
Investor's IRD number IRD number of the Investor. If this number is not provided by the investor, default 00000000.
Note: The field requirement is 8 to 9 characters.
If the investment is in a partnership name then enter the partnership's IRD number. For joint holders of investments provide the IRD number for the holder with the highest PIR.
Certificate ID
(investor certificate ID)
An ID assigned by the PIE to uniquely identify the certificate. This may be a sequential number or other unique identifier, particularly relevant if more than one certificate is being filed for any single investor. The certificate number will show that it is not a duplicate or amendment.
PIR as at year end The latest prescribed investor rate used in a tax calculation requiring a tax payment/credit for the tax year. For notified foreign investors use the code 99.99 for investors in countries with which we hold a double tax agreement (DTA) and 90.00 for notified foreign investors in non DTA countries

Part B

Requirement Description

Total income/loss

 

Taxable income for investors, including zero-rated.

Note: This is after deducting " Investor expenses less credits for fees ".

Income of notified foreign investors can be net of expenses where tax calculation is not affected.

Total tax credits used

Total of all various tax credits (FTC, IC, MAC, DWP and RWT) for all investors whose tax calculation included a claim for a tax credit.

Note: Excess FTCs that are lost are excluded, eg taxable result for a natural person investor is a loss, so all FTCs attributed to that investor are lost.

Default is positive.

This includes RWT, FDP and MAC credits used for notified foreign investor tax calculation

PIE tax paid/credited Total of net tax position for all investors after deducting tax credits (FTC, IC, MAC, FDP and RWT). Includes tax on income attributed to notified foreign investors.

Part C

Requirement Description

Taxable income/loss taxed at low and/or mid rate(s)

 

  • Taxable income or loss for the lower rate or rates for investors who had tax calculated during the year at two or more of the low, mid and top PIRs.
  • The income/loss details are only applicable to the amount(s) where the lower rate or rates where all three rates were applied in a final tax calculation.
  • Income attributed to a period where tax calculated at a rate lower than the investor's correct rate is no longer excluded income.

Note: This is after deducting "Investor expenses less credits for fees" at lower rate or rates

For notified foreign investors this will be 0.00.

PIE tax paid/credited on investor's income at low and/or mid rate(s)

PIE tax paid/credited for the investor who had tax calculated during the year at two or three of the low, mid and top PIRs. That is after deducting tax credits.

The tax paid/credited details are only applicable to the amount where the lower rate or rates (if three rates applied) were applied.

Income attributed to a period where tax calculated at a rate lower than the investor's correct rate is no longer excluded income.

For notified foreign investors this will be 0.00.

Total tax credits on investor's income at low and/or mid rate(s)

Total tax credits for the investor who had tax calculated during the year at two or three of the low, mid and top PIRs
Total of the various tax credits (FTC, IC, MAC, DWP and RWT) attributed to the attribution period in which the lower rate or rates where all three rates were applied. .
Note: If an investor is required to file a return because their PIR is higher than that given to a PIE and thus, the investor attributed income is not excluded income, the investor may be entitled to some further FTCs, which were not available to offset the tax payable at the PIE level.

As tax credits can be positive or negative may also be a positive or negative result. Default is positive.

For notified foreign investors this will be 0.00.

Part D

Requirement Description

Taxable income/loss for investors that used zero and another PIR

 

Taxable income/loss for investors that had the zero rate and any other rate used in a final tax calculation for the year. You do not need to include the details for companies except for trustees. Usually applies to quarterly filers that zero-rate exiting investors to identify the zero-rated component.
Note: This is after deducting "Investor expenses less credits for fees".

For notified foreign investors this will be 0.00

Total zero-rated attributed foreign tax credits Total FTCs attributed to the investor who had the 0% rate applied. Includes investors in PIEs that file quarterly with income/loss that is zero-rated for an exit period.
As tax credits can be positive or negative may also be a positive or negative result. Default is positive.
Total zero-rated attributed DWP/MA tax credits

Total tax credits for investors who had tax calculated during the year at two or three of the low, mid and top PIRs
Total of the various tax credits (FTC, IC, MAC, FDP, DWP and RWT) attributed to the calculation period where the lower rate or rates where all three rates were applied.

Note: If an investor is required to file a return because their PIR is higher than that given to a PIE and thus, the investor attributed income is not excluded income, the investor may be entitled to some further FTCs, which were not available to offset the tax payable at the PIE level.

As tax credits can be positive or negative may also be a positive or negative result. Default is positive.

Total zero-rated attributed IC tax credits

Total of all imputation credits attached to NZ dividends attributed to the investor who had the 0% rate applied. Includes investors in PIEs that file quarterly with income/loss that is zero-rated for an exit period.
As tax credits can be positive or negative may also be a positive or negative result. Default is positive.

Total zero-rated attributed RWT credits

Total of all RWT credits attributed to the investor who had the 0% rate applied. Includes investors in PIEs that file quarterly with income/loss that is zero-rated for an exit period.

As tax credits can be positive or negative may also be a positive or negative result. Default is positive.

Zero-rated exited investor's tax payment for exit period

If an exited investor, in a quarterly return filing PIE, has any units/interest left at end of the exit period, the PIE will pay the value of the units/interest as tax. The investor is then allowed a credit in their income tax return for the payment made by the PIE.

For notified foreign investors this will be 0.00

Part E

Requirement Description
Date of birth For a living person their date of birth. Not required for other entities but can be provided.
Home address

The address in the country or territory where the investor resides for tax purposes. Four lines of up to 30 characters per line. The preferred format is:

  • First line: Street
  • Second line: City
  • Third line: State/Province
  • Fourth line: Country
The default is, eg for residents 0 in each line, or any line not used.
Country code

The two digit country code using the ISO 3166 standard.

Read the Non-resident withholding tax (NRWT) rates and country codes (IR290)

Home country tax file number No embedded commas or special characters as per build pack list.
Units held Y/E

Number of units the investor held at year end.

For all investors not just NFIs

 


Date published: 23 Nov 2011

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