Your tax return and your allocated income from your PIE
When your allocated income from your PIE is derived
If you have a balance date other than 31 March, your allocated income from your PIE is derived in your income year which includes the end of the PIE's income year. See the following examples.
| If you have a... | and ... | then ... |
|---|---|---|
| 30 June 2009 balance date which is your 2009 income year | the PIE you invest in has a 31 March 2009 balance date | as the end of the PIE's 2009 income year falls within your 2009 income year, your income for the 2009 income year will include the allocated income from the PIE up to 31 March 2009. |
| 31 December 2008 balance date, which is your 2009 income year | the PIE you invest in has a 31 March 2009 balance date | as the end of the PIE's 2009 income year falls after the end of your 2009 income year, the allocated income from the PIE for the year ended 31 March 2009 will fall your 2010 income year. |
When to complete a tax return
| If you ... | then you ... | and file it by ... |
|---|---|---|
| already complete an IR3NR return | will continue to do so | the usual return filing dates.* |
| have previously not been required to file a tax return | must file an IR3NR tax return if you receive zero-rated (non-excluded) allocated income from your PIE | the usual return filing dates.* |
*Unless you have an extension of time to file a tax return, filing dates are:
- 7th of the fourth month after the balance date for taxpayers with a late balance date (ie 1 April to 30 September), or
- 7 July following the end of the tax year for other non-resident taxpayers.
Including income allocated from the PIE in your tax return
You only have to include income allocated from your PIE in your tax return when it is treated as assessable (non-excluded) income.
| If ... | then ... |
|---|---|
| you have given the correct PIR to your PIE and you have not been taxed at a zero rate on exiting the PIE | you do not include the allocated income from your PIE in your New Zealand income tax return. |
| you have given a rate lower than your correct PIR | you must include the allocated income from your PIE in your tax return and pay tax based on your marginal tax rate. |
| you are an investor withdrawing your investment from a PIE that zero rates the income for a quarter | you must include the allocated income from your PIE in your tax return and pay tax based on your marginal tax rate. |
| your allocated income from your PIE is treated as excluded income | it will generally not be taken into account for student loans and child support calculations. |
Note
If your investment in the PIE is in overseas markets, you do not have to include any foreign investment fund (FIF) income in your tax return. Any income calculations under the FIF rules will be made by the PIE.
PIE income and foreign tax credits
Foreign tax credits are taken into account by the PTRE when it calculates its tax liability. They can only be used to the extent of the New Zealand tax payable on the PIE allocated income.
Where your income allocated by the PTRE has been taxed at a PIR of 0% on exit from the PTRE, the foreign tax credits can be claimed in your tax return up to the amount of the tax you are required to pay on the income allocated by the PTRE.
PIE income and New Zealand tax credits
New Zealand tax credits are taken into account by the PTRE when it calculates its tax liability. They can only be used by the PTRE to the extent of the New Zealand tax payable on the PIE allocated income.
Where you have been taxed at a zero rate by the PTRE on exit, the amount of the allocated New Zealand tax credits flow directly to your New Zealand tax return.
Note however, that non-residents cannot claim imputation credits.
Excess New Zealand tax credits and losses
Most PTREs that have excess New Zealand tax credits or losses in a tax calculation period receive a tax credit calculated at the individual investor's PIR.
The PTRE then allocates the credit to the investor by adjusting their investor's interest in the PTRE, or making a distribution to the investor.
At the end of the year
| If the allocated income from your PIE ... | then ... | and your PIE ... |
|---|---|---|
|
is not excluded income |
it must be included in your tax return and you may have tax to pay depending on the nature of other income or loss and tax credits you may have |
|
|
is excluded income |
the PIE will already have paid the tax on the income. |
|
Date published: 21 Jul 2008
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