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.
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|
|Individuals||10.5%, 17.5%, 28%|
|Partners who are trustees||0%, 10.5%, 17.5%, 28%|