PIEs for non-resident investors

A portfolio investment entity (PIE) is a type of entity (such as a managed fund) that invests the contributions from investors in different types of investments. PIEs came into existence on 1 October 2007. Eligible entities that elect to become a PIE will generally pay tax on investment income based on the prescribed investor rate (PIR) of their investors, rather than at the entity's tax rate. The PIR for non-residents is 28% (reduced from 30% on 1 October 2010).

Tax residency and status

Non-residents are only liable for New Zealand tax on income from New Zealand sources. For tax purposes you are a non-resident if you are away from New Zealand for more than 325 days in any 12-month period, and do not have an enduring relationship with New Zealand.

Travelling to New Zealand

This information is relevant to you if you are coming to New Zealand with the intention of staying for a short term only. If you are working during your stay you need to apply for an IRD number as you must pay income tax on the wages you receive.

Moving to New Zealand

This information may affect you if you are thinking about moving to New Zealand and staying here for the long term. You will need to apply for an IRD number. You may also be eligible to take out a student loan or receive Working for Families Tax Credits (formerly known as family assistance).

Australians conducting business in New Zealand

If you are an Australian doing business in New Zealand, any tax requirements you have here will depend on the way you operate your business and whether you're a resident for tax purposes.

Non-resident contractors

This information applies to any non-resident contractor (independent person, company or other entity) who performs services in New Zealand under contract. It does not apply to employees, sportspeople, entertainers and performing artists.

Non-resident entertainers and sportspeople

Non-resident entertainers are those who perform in public or in front of a camera. A non-resident entertainer can be an individual, company, partnership, trust or any other entity. Withholding tax and GST may apply.

Double tax agreements

You may be a tax resident in both New Zealand and another country. If both countries tax their residents on worldwide income, you could be taxed twice. Double tax agreements have been negotiated between New Zealand and many other countries to decide which country has the first or sole right to tax specific types of income.

Date published: 30 Sep 2008

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