Income tax Dates
Partnerships can hold investments in portfolio investment entities (PIEs). Each partner has tax obligations in relation to their share of the income from the investment.
If a partnership invests with a multi-rate PIE (MRP), the investment should be split so that each partner can provide the MRP with their own IRD number and prescribed investor rate (PIR).
New investors have 6 weeks to provide their IRD number to the MRP. Otherwise the MRP will close their account and refund their investment.
For income attributed during the 6 weeks, the MRP will:
- work out tax using the default rate and pay this to us
- include any net balance in the refund of an investment.
If partners do not provide the MRP with their PIR, the default rate of 28% will be used.
Partnership prescribed investor rates
Limited partnerships are not treated as separate entities under the PIE rules.
The following PIRs apply to partners in partnerships:
| Investor | Prescribed investor rate |
|---|---|
| Zero-rated companies | 0% |
| Individuals | 10.5%, 17.5%, 28% |
| Partners who are trustees | 0%, 10.5%, 17.5%, 28% |