Income tax Dates
Your portfolio investment entity (PIE) income is treated as income for Working for Families and student loans in certain situations.
When you need to tell us about your PIE income
You will need to make an income adjustment if you have:
- income attributed from a PIE that allows you ready access to your investment (such as a cash PIE, on-call PIE, or a PIE term deposit)
- dividends from listed PIEs, if you have not declared them in your individual tax return (IR3) or income tax assessment.
When you do not need to tell us about your PIE income
You will not need to make an income adjustment if your PIE is a retirement savings scheme or superannuation fund (like KiwiSaver).
Your PIE provider can tell you if this applies to you.
George receives an inheritance of $400,000 and invests it in a cash PIE that is not a superannuation fund or retirement savings scheme.
He receives an annual income of $20,000 on that investment.
George has used the correct prescribed investor rate (PIR) so he has not included the PIE income in his IR3 individual tax return.
He will have to include the PIE income of $20,000 as part of his income for Working for Families and student loans.