IR853 Annual reconciliation - all PIEs
Note
The current version 0003 can continue to be used for the new foreign investment PIEs. However, version 0004 has been developed so that variable-rate PIEs can move to the full new series of version 0004 PIE returns.
If you are a B2B filer you should use the complete new series to include the change in tag name from "Taxable income/loss" to "Total income/loss".
Return detail requirements
The following table sets out the return details requirements for the annual reconciliation.
There are four parts to the annual reconciliation:
- Part A covers return and portfolio investment entity (PIE) level identification data.
- Part B covers the full income/loss details for all investors.
- Part C is only completed where an investor has had tax calculated at the two or three of the positive rate PIRs. It identifies the details of the lowest rate if two rates are used or both of the lower rates if the three rates are used 10.5%, 17.5% and 28%.
- Part D covers zero-rated income/loss details for positive rate investors, for the details that were subject to the zero rate. The tax credits cover all zero-rated investor details including exitors.
Where there is a change to the PIRs in schedule 6 during the year, the terms low, mid and top will cover both the old and new rates. However if a new rate is included or removed, further instructions will be provided.
Example
Low rate will cover details for both 10.5% and 17.5% for the 2012 tax year.
Return identification and version number
There are two additional data fields that are not part of the return but are used to identify the type of message.
-
Return type IR853.
For file transfer this is the first field. For B2B this is the root element. - Return version, eg 0001 for pre-1 April 2008 and 0002 for returns after 1 April 2008. This reflects any changes to the format such as the change in the PIR from 33% to 30%. This is the second field for file transfer (CSV). For B2B this will be the first field. Version 003 for income years commencing on or after 1 April 2010 for the PIR changes. Foreign investment PIEs can choose between version 0003 or 0004.
Note: For foreign investment zero-rate PIEs that use version 0003, the field titled "Taxable income/loss" is changed to "Total income/loss for notified foreign investors".
Part A
|
Element
|
Description
|
|---|---|
| PIE name | Name of the PIE or PIE investor proxy (PIP) |
| 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. |
| Total number of certificates | The number of certificates associated with the return |
Part B
| Element | Description |
|---|---|
| Taxable income/loss |
The taxable income or loss for all investors. Includes zero-rated investors. If used by foreign investment PIE the field title is "Total income/loss". Note: This is after deducting " Investor expenses less credits for fees " |
| Total tax credits for low, mid and/or top PIR investors |
Total of all various tax credits (FTC, IC, MAC, DWP and RWT) for all investors who had a PIR of low, mid and/or top used in final a tax calculation. Note: Excess FTCs that are lost are excluded, eg taxable result for a natural person investor is a loss, then all FTCs attributed to that investor are lost. As tax credits can be positive or negative may also be a positive or negative result. Default is positive. |
| PIE tax paid/credited on investor's income for low, mid and or top PIR | Total of net tax position for all investors with low, mid and or top PIR. That is after deducting tax credits covered above. |
Part C
| Element | Description |
|---|---|
| Taxable income/loss taxed at low and/or mid rate(s) |
Note: This is after deducting " Investor expenses less credits for fees” at the lower(s) |
| PIE tax paid/credited on investor's income at low and/or mid rate(s) |
PIE tax paid/credited for investors who had tax calculated during the year at two or three of the low, mid and top PIRs That is after deducting tax credits.
|
| Total tax credits on investor’s income at low and/or mid rate(s) |
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, 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. |
Part D
|
Element
|
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". |
| Total zero-rated attributed foreign tax credits |
Total FTCs attributed to investors 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 of all foreign dividend withholding payment tax credits and Maori authority credits attributed to investors 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 IC tax credits |
Total of all imputation credits attached to NZ dividends attributed to investors 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 tax credits |
Total of all RWT credits attributed to investors 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/interests as tax. The investor is then allowed a credit in their income tax return for the payment made by the PIE. |
Date published: 23 Nov 2011
Back to top