From the 2021 tax year we've made paying the right tax on income from portfolio investment entities (PIEs) easier and fairer.
If you're using the wrong prescribed investor rate (PIR) we send you a letter asking you to change it. Now, we also send these letters to the PIE (including KiwiSaver schemes) asking them to change the PIR, making the process easier for you.
By sharing your new PIR rate with your PIE, the PIE can work out the right amount of end-of-year tax. There should be no bills and no overpayments.
Due to a law change we can now refund overpaid tax on PIE income. In past tax years any overpaid tax on PIE income was final and no refund was available.