Different prescribed investor rates (PIRs) apply to investors in multi-rate PIEs. You'll need to use the PIR that applies to your situation so you're paying the right amount of tax.
Once you've worked out your PIR, make sure you give it to your portfolio investment entity (PIE). You'll also need to give them your IRD number.
If we notice you are not using the correct PIR, we'll:
- let you know
- tell your PIE to start using the correct PIR.
This does not remove your responsibility to let your PIE know your correct PIR. It's a good idea to review your PIR each tax year and let your MRP know of any changes.
If you do not give your PIR to your PIE, they'll need to apply the default PIR of 28% to your PIE income. This rate could be higher than your PIR.
Income tax assessments
Your income tax assessment will include your PIE income and tax – like KiwiSaver. Where you've overpaid PIE tax, we’ll factor this into your overall income tax assessment. This means you may receive a refund. The PIR you should be on will be displayed in your myIR account.
Individual tax residents
Individuals who are New Zealand tax residents have different PIRs depending on their taxable income in each of the last 2 tax years. You'll need to work them out separately. If they are different, you can then choose the lower of those PIRs for the current tax year.
It’s important that if you earn income outside of New Zealand, you’ll need to include this worldwide income when working out your PIR.
The table shows the income amounts that qualify you for each PIR in a tax year. You'll need to meet the amounts in both columns to be able to use that row's PIR.
|Taxable income without your PIE income||Taxable income with your PIE income||PIR|
|$14,000 or less||$48,000 or less||10.5%|
|$48,000 or less||$70,000 or less||17.5%|
|All other cases||28%|
Keep in mind that if you have a 4-year temporary tax exemption, you can use a 0% PIR if you invest in a zero-rate PIE.
Calculate your prescribed investor rate (PIR)
There are a few ways we can help you calculate your prescribed investor rate.
Calculate your PIR in myIR
You can work out your prescribed investor rate (PIR) in myIR if you have PIE funds.
There's no need to add income details if you've already added them to your myIR account. If any of your income types are not listed in your account, make sure you add them.
You'll still need to tell your portfolio investment entity (PIE) which rate to use.
In myIR, you'll be able view your:
- income listed with us
- PIR, if we're able to calculate it for you.
If you do not have a myIR account, you can either register for one or give us a call.
Register for a personal myIR account
General enquiries and myIR support
Use our online tool to work out your PIR
You'll need your income details for this.
What is my prescribed investor rate?
Make sure you're a non-resident taxpayer by checking your tax residency status.
Tax residency status for individuals
Tax residency status for companies
As a non-resident investor, you'll have a:
- 28% PIR if you do not invest in foreign PIEs
- PIR that depends on the type of investment and the country the investments are in, if you invest in a variable rate PIE
- 0% PIR if you invest in a zero-rate PIE.
Non-individual tax residents
Investments held by companies, incorporated societies, charities or PIEs have a PIR of 0%.
Trusts can often choose a PIR to suit their beneficiaries.