Partnerships can hold investments in portfolio investment entities (PIEs). Each partner of the investment has tax obligations in relation to their share of the income.
If partners do not provide IRD numbers and prescribed investor rates, the multi-rate PIE will deduct tax at the default rate of 28%.
Investors have 1 month to provide this information after a multi-rate PIE asks them to.
Partnership prescribed investor rates
Limited partnerships are not treated as separate entities under the PIE rules.
The following prescribed investor rates apply to partnerships:
|Investor||Prescribed investor rate|
|Individuals||10.5%, 17.5%, 28%|
|Partners who are trustees||0%, 10.5%, 17.5%, 28%|