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Making changes to your prescribed investor rate (PIR)

Incorrect PIR

If your PIR is incorrect, then you need to give the PIE your new PIR, along with your IRD number.

You should do this as soon as possible.

If we identify you are not using the correct rate we can tell the PIE to change your rate. This does not remove your obligation to notify the PIE of your correct PIR.

If I need to change my rate when will the change take effect?

If the PIE ... then ...
has not yet completed its tax calculation for the period (quarter or annual) the PIE may be able to adjust for the correct tax rate for that quarter or tax year.
has already completed its tax calculation for the period (quarter or annual) the change will apply from the PIE's next calculation period.

Find out what to do if you change your country of residency when investing in a foreign investment PIE

What happens for periods before the change of your PIR?

If your ... and ... then ...
PIR applied in earlier periods was 28% your new PIR is 17.5% you will not be able to get a refund of tax calculated at the higher rate.
PIR applied in earlier periods was less than your new PIR of 28%   you must include the income taxed at the lower rate or rates in your tax return and pay any balance of tax.

You will be given a credit for the tax paid.

What happens if your income changes for any reason?

If ... then ...
your income changes during the current year as an individual investor, your PIR is not affected as it is determined by the income received in the previous two years.
your income changes for a previous year as an individual investor, you need to tell the PIE of any change to your PIR arising from a change in income in either of the previous two years.

Find out what to do if you change your country of residency when investing in a foreign investment PIE

2010 - 2011 rate changes

Two sets of rates applied during the 2011 tax year:

  • rates for income years commencing on or after 1 April 2010 and ceasing on 30 September 2010, and
  • rates applying from 1 October 2010.

The PIE attributes it's income across each day in the year and calculates the tax at the rate that applies for each of the days in the year. For most investors this means that the income attributed to your investment for the days 1 April 2010 to 30 September 2010 will be taxed at the rates applying for that period, as set out in the first column of the table below.

Tax calculations from 1 October 2010 will use the rates in the second column.

PIEs that have an early balance date will not use the rates in the first column and will move their investors to the new rates from 1 October 2010.

If the rate for 1 April to 30 September 2010 is.. then the rate from 1 October 2010 is ...
30%
28%
21%
17.5%

19.5%

17.5%
12.5%
10.5%
0%
0%
Default rate 30%
28%

There was no change to the eligibility criteria or income levels so you will not need to review your rate unless your circumstances changed.
If you don't qualify for 17.5% you must contact your PIE and give them your actual PIR

Additional information

Prescribed investor rate examples

Previous years' rates