Make sure you're using the correct prescribed investor rate (PIR)
There are four rates: 0%, 12.5%, 21% and 30%. Read the information below to identify the correct rate for your circumstances. Only certain trustees are able to choose a rate. All other investors have only one rate that they qualify for.
Resident individuals
Taxable income was $14,000 or less
| If, in either of the previous two income years your taxable income was $14,000 or less, and when combined with your PIE income or loss was ... | and ... | then your PIR is ... |
|---|---|---|
| $48,000 or less in the income year | 12.5%. | |
| $48,001 to $70,000 in the income year | you don't already qualify for 12.5% | 21%. |
| $70,001 or more in both of the previous two income years | 30%. |
Taxable income was $14,001 to $48,000
If in either of the previous two income years, your taxable income plus your PIE income or loss was:
- $70,000 or less in the income year, your PIR is 21%, or
- $70,001 or more in the previous two income years, your PIR is 30%.
Taxable income was more than $48,000
If your taxable income was more than $48,000 in both of the previous two income years, your PIR is 30%.
Note
If for the two previous income years you qualify for two rates, your PIR is the lower rate.
For example, last year your rate is 21%, the previous year's rate is 12.5%, so your PIR is 12.5%.
Other investors
| If you are a ... | then your PIR is ... |
|---|---|
| non-resident investor | 30% |
| company, incorporated society, PIE or PIE investor proxy (PIP) | 0% |
| trustee (excluding charitable trusts) and Super funds | either 30%, 21% or 0%. You can choose one to best suit your beneficiaries. |
| registered charitable trust | 0% |
| joint investment, partnership or unincorporated society | 0%, 12.5%, 21% or 30%. The investment should be split and each partner/holder should give the PIE their correct PIR and IRD number. |
When you have calculated your PIR
Once you have calculated your PIR, you should give your PIE your PIR and your IRD number.
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.
Additional information
Prescribed investor rate examples
Date published: 22 Feb 2010
Back to top