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Service changes and updates IR offices, myIR and phone lines (SPK2IR) are unavailable until the morning of Thursday 28 October for planned system maintenance. Find out more

Resurgence Support Payment (RSP) You will not be able to apply for the RSP in myIR until the morning of Thursday 28 October. Businesses affected by the alert level increase that started on 17 August can apply in myIR from 28 October. Applications for a 4th payment round are planned to open on 29 October. Find out more

Resurgence Support Payment (RSP) The government has announced an increase to the amount and frequency of the RSP from 12 November. Find out more

If you're an overseas investor, you can either be a

  • notified foreign investor
  • non-resident investor.

Portfolio investment entity (PIE) income is taxed differently depending on your situation.

Notified foreign investors

If you're a non-resident who holds an investment in a foreign investment PIE, you can notify the PIE you want to be a notified foreign investor (NFI).

To be an NFI, you cannot be:

  • resident in New Zealand
  • a controlled foreign company
  • a non-resident trustee of a New Zealand trust
  • a foreign investment fund with a New Zealand resident who has an income interest of 10% or more.

You'll need to provide your full name, date of birth, home country address and your IRD number equivalent.

Prescribed investor rates (PIRs) for non-residents

If you're an NFI in a foreign investment variable-rate PIE, you must use the prescribed investor rate (PIR) applicable to the income types and sources.

If you're an NFI in a foreign investment zero-rate PIE, you must use the 0% PIR. 

If you tell your multi-rate PIE (MRP) that you've either become a notified foreign investor or stopped being one during a year, the PIE income or loss may be included in your income tax assessment for the year. There are a number of potential scenarios the PIE needs to consider. Refer to our ‘Portfolio investment entity guide – IR860’ under the heading 'Investor changes residence'.

If you're a non-resident (individual or entity) and are not a notified foreign investor, then your PIR is 28%. You cannot choose a lower rate.

Multi-rate PIE income and your tax return

Income from an MRP must be included in your tax return if you:

  • used a PIR that's too low
  • have been taxed at 0% (zero-rated) because you exited an MRP during a quarter, except for NFIs of a foreign investment PIE
  • have been incorrectly treated as an NFI.

Dividends or distributions from an MRP are excluded income. This means they’re not included in your end-of-year tax return or assessment.

If you exit an MRP that files quarterly, any remaining interest may be paid to us instead. We'll be paid the interest within a month after the end of the quarter that you exited in. You'll be entitled to a tax credit for this amount in your annual income tax return or assessment.

Last updated: 14 Jul 2021
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