Ngā hinonga kohinga haumi (PIE) mō ngā kainoho o Aotearoa Portfolio investment entities (PIEs) for New Zealand residents

Prescribed investor rates (PIRs)

If you're an individual and a New Zealand tax resident, your portfolio investment entity (PIE) income will be taxed using your prescribed investor rate (PIR).

The prescribed investor rates are 10.5%, 17.5% and 28%.

You need to let your PIE know what your PIR is. If you do not provide your PIE with your PIR, you'll be taxed at the default rate of 28%. 

If you invest in a multi-rate PIE (MRP), you need to provide them with your IRD number and PIR. A common type of MRP is a KiwiSaver scheme. For new investments you have 6 weeks to provide your IRD number or the MRP will close your account.

You may be taxed at 0% (zero-rated) if you exit from an MRP during the quarter (withdraw your investment entirely), or if you're a transitional resident with an investment in a foreign investment zero-rate PIE.

Find my prescribed investor rate

PIE income and your end of year tax assessment

2021 and future tax years

For the 2021 tax year onwards, we'll check if you've used the correct PIR for the full year. If not, the tax difference will be included in your income tax calculation. This will appear as a PIE debit or PIE credit in your income tax assessment.

Income for Working for Families Tax Credits and student loans

If your PIE income is from a locked-in fund, it is not included as income for Working for Families Tax Credits or student loan purposes. A locked-in fund is a retirement savings scheme that has a rule preventing you from readily accessing your funds until you reach a specified retirement age. A KiwiSaver scheme is an example of a locked-in fund. If you are not sure you should check with your MRP.

2020 and earlier tax years

For the 2020 and earlier tax years, if your PIE income or loss was taxed at your correct or higher PIR, it is not included in your end-of-year tax return or assessment. No refund is available for overpaying PIE tax.

However, your MRP income or loss must be included in your end-of-year tax assessment if you've:

• used a PIR that's too low
• been taxed at 0% because you exited an MRP during a quarter
• chosen not to include your worldwide income as a new tax resident when choosing your PIR. 

If you included PIE income or loss in your tax return or assessment, you’ll need to make an income adjustment to exclude any locked-in PIE income. You’ll also need to add in any non-locked-in PIE income that is not already included. Complete the 'Adjust your income service' in myIR when completing your income tax return or complete the 'Adjust your income – IR215' form.

Adjust your income for Working for Families and student loans

Change of residency

If you become a non-tax resident, your PIR should be 28% from the date you leave New Zealand. You need to let your MRP know as soon as possible.

If you become a tax resident, you generally need to include your worldwide income when working out your PIR. However, if your income for your first 2 years as a tax resident will be a lot lower than your worldwide income for the past 2 years, you can choose to not include your worldwide income when working out your PIR.

Information handling

Multi-rate PIEs (MRPs) generally need to provide details of your income by 15 May or 30 June of the following tax year. If you do not receive details from your MRP or you think the investor statement is wrong, you need to contact the MRP.

There are no record keeping requirements when all of the following apply:

• the PIE income is attributed by the MRP to an individual who only has income taxed at source
• the individual has provided their IRD number to all payers.

The exception to this is when an investor is required to provide details of their attributed PIE income for the purpose of a student loan repayment obligation. In this case a record of the attributed PIE income must be kept for 12 months after the end of the income year in which the income was received.

Records must be kept for at least 7 years where an investor is an individual and either:

• received other untaxed income
• did not give their IRD number to a payer.