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PIE income

About your PIE

There are some facts you will need to know about your PIE to help you with your tax responsibilities.

When the PIE sends you your income tax details

Generally PIEs need to provide the information by 31 May or 30 June following the tax year.

PIEs that quarterly file, and zero-rate their exiting investors need to provide the information by giving a notice to the investor within one month of the end of the quarter in which the investor exited the PIE.

If you don't get any details from your PIE or you think the investor statement is wrong, then you need to contact your PIE.

PIEs listed on the New Zealand stock exchange may send a dividend statement to their investors.

Excluded and non-excluded income

Excluded income is income attributed by the PIE that does not need to be included in your tax return.

Non-excluded income is income attributed by the PIE that must be included in your tax return.

How other obligations are affected by PIE income

Student loan repayments

If the PIE income is ... then it ...
excluded income is not taken into account when determining student loan repayments.
not excluded income will be taken into account in determining student loan repayments.

Child support payments

If the PIE income is ... then it ...
excluded income is not taken into account when determining child support payments.
not excluded income will be taken into account in determining child support payments.

Ceasing your investments

If you want to cease your investment, you should contact your PIE to find out what is required, and whether there will be any costs involved.

You do not have to tell us if you exit the PIE.

Represented by a PIE investor proxy

If you are represented by a PIE investor proxy and cease to do so, the proxy's obligations will pass directly to the PIE that your investment is held in.

Investors leaving or arriving in New Zealand before 1 April 2012

If you are ... and you ... then you ...
a non-resident who has invested in a PIE become a New Zealand resident

can use a PIR of 10.5% for two years after becoming a resident of New Zealand.

You must advise the PIE of the change from 28% to 10.5%.

a non-resident who has not previously invested in a PIE become a New Zealand resident can use a PIR of 10.5% for two years after becoming a New Zealand resident.*
a resident who has invested in a PIE cease to be a New Zealand resident should use a PIR of 28% from the date you cease to be a New Zealand resident and tell the PIE of the change as soon as possible. After 1 April 2012 you qualify as a notified foreign investor.

*Your PIR is based on income taxable in New Zealand received in the previous two income years.

Note

A transitional resident who invests in a foreign investment zero-rate PIE can notify their PIE the 0% PIR from 29 August 2011.

If you are a new resident

From 1 April 2012 new residents must determine their PIR based on their worldwide income and not just New Zealand taxable income.

A new resident may choose not to include their worldwide income when determining their PIR for either or both of the income years, if they reasonably expect that their taxable income in either of their first two years as a resident will be significantly lower than their total income from all sources for the previous income year(s). If you choose not to include your worldwide income the PIE income is no longer excluded income and must be included in your income tax return. The income will then be taxed at your marginal tax rate that may be higher than the 28% top resident PIR.

Some PIEs may not be able to instantly change your PIR to or from a notified foreign investor, so they are allowed to continue your current PIR until the end of the tax year.

Find out about changes to or from being a notified foreign investor

 


Date published: 06 Sep 2011

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