Making changes to your prescribed investor rate (PIR)
New rates apply from 1 April 2010
2011/2012 rate changes
New rates apply to income years commencing on or after 1 April 2010. For most investors your PIE will be able to apply the new rates to the 2011 income year. However some PIEs have income years that end before 31 March 2010 and so will not use the new rates until their 2012 income year.
If your PIR is currently 19.5%:
- at the end of the income year that is on or after 31 March 2010, and
- you qualify to use the 21% PIR for the 2011 income year
then your PIE can change your PIR to 21%.
If you don’t qualify for 21% you must contact your PIE and give them your actual 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.
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. |
What happens for periods before the change of your PIR?
| If your ... | and ... | then ... |
|---|---|---|
| PIR applied in earlier periods was 30% | your new PIR is 21% | 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 30% | 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. |
Additional information
Prescribed investor rate examples
Date published: 22 Feb 2010
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