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Portfolio investment entity (PIE) income

Details of your PIE income

Most PIEs that work out tax based on their investors' prescribed investor rate (PIR) need to send you your income tax details by:

  • 31 May, or
  • 30 June.

If your PIE zero-rated your income when you left they need to provide the details within one month of the end of the quarter you left.

Contact your PIE if you don't get any details from them or you think the investor statement is wrong.

If your PIE is listed on the stock exchange, they may send a dividend statement to you. These dividends aren't liable for resident withholding tax (RWT).

PIEs will send us investor income details when they file their annual reconciliation.

We won't send you anything relating to the income from the PIE if:

  • your prescribed investor rate (PIR) was correct, and
  • the PIE attributed income was excluded income
What excluded and non-excluded income is

Excluded income

Income attributed by the PIE that isn't included in your tax return.

Non-excluded income

Income attributed by the PIE that must be included in your tax return.

Cashing up some units

The responsibilities of your PIE will depend on the type of PIE you invested in. Generally your PIE will deduct tax before returning funds to you.

Certain PIEs aren't able to work out tax when you withdraw your investment. If your PIE works out tax for the period of withdrawal at a zero rate, the income is no longer excluded income. You'll need to include this in your tax return.

PIEs can't treat notified foreign investors as investors who leave as zero-rated investors. If you're a notified foreign investor in a foreign investment zero-rate PIE, you'll have a zero rate applied.

What IRD number your PIE needs

If you hold investments in your name use your own IRD number.

If more than one person holds the investment each with different PIRs, the correct PIR and IRD number needs to be provided for each person. This may mean splitting the investment.

How other entitlements and obligations are affected by PIE income

Working for Families Tax Credits (WfFTC)

If your PIE is a locked-in fund (this includes KiwiSaver and similar retirement savings schemes or superannuation funds) your PIE income doesn't affect your entitlement even if you:

  • have provided the PIE with a rate lower than your correct PIR, and
  • must include the PIE income in your tax return.

If you have included PIE income in your tax return you need to exclude for WfFTC purposes by completing the Adjust your income (IR215).

PIE income will affect your entitlement if the funds aren't in a locked-in fund. If the PIEs investor funds aren't locked in, they need to notify you of your income details by 31 May. This is so you can include this income on the IR215.

If the PIE income is already included in your taxable income then you don't need to show it on the adjustment form. This includes a dividend you include from a listed PIE.

Student loan repayments

If the PIE income is excluded income, it is only taken into account if it is from a locked-in fund when working out repayments.

If the PIE income is non-excluded income, it is taken into account when working out repayments.

If you have non-locked in PIE income that isn't included in your income tax return, you may need to complete the IR215 to include it.

If you have included locked in PIE income in your income tax return, you'll need to complete the IR215 to exclude it.

Working out child support payments

PIE income isn't taken into account when it is excluded income. It is taken into account when it is non-excluded income.

Spousal, de facto or civil union partnership joint PIE investments

Splitting the investment

Income is attributed according to your share of the investment. For spouses this is usually a 50/50 split. Generally the PIE should record it as two investments to ensure the correct treatment is applied to each investor.

Find out your correct rate

Refund of overpaid PIE tax if the investment is in joint names

Tax worked out by PIEs for individuals is a final tax. If one investor qualifies for one of the lower PIRs they will not be entitled to a refund of the difference in rates.

Declaring the dividend if your PIE is a company listed on the New Zealand stock exchange

If your PIE isn't a multi-rate PIE they may continue to pay dividends. You can choose to declare your share of the dividend in your tax return. You must be a New Zealand resident and either:

  • a natural person, or
  • the trustee of the trust receiving the PIE income.

Transferring your investments

You can't transfer investments you hold in your name to another person, eg, a spouse on a lower income. You can sell investments. There are rules around the valuation of property sold to associated persons.

Stopping your investments

Contact your PIE to find out what you need to do if you want to stop your investment. There may be costs involved. You don't have to tell us if you leave your PIE.

Investments held at the time of death

Investments held at the time of death will pass to the estate. The transfer to the estate is considered as leaving the PIE. The PIE may zero rate the income in the period to the date of death. This will need to be included in the tax return. The income can be treated as excluded if the PIE has worked out tax and the correct PIR has be used.

If the investments aren't distributed to the beneficiaries but stay held in the estate

The executor or trustees can choose whether to tell the PIE of a 28%, 17.5% or 0% PIR. In certain cases a 10.5% PIR may be used.

If you're an investor leaving or arriving in New Zealand

If you're a new resident you need to include your worldwide income when determined your PIR. You may choose not to include your worldwide income for either or both of the first two income years. You can do this if you expect your taxable income to be significantly lower than your total income from all sources.

If you choose not to include your worldwide income

Your PIE income is no longer excluded income and you must include it in your income tax return. The income will then be taxed at your marginal tax rate. This may be higher than the 28% top resident PIR.