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Budget 2024 | The Government has confirmed changes to personal income tax, the independent earner tax credit, in-work tax credit, and the minimum family tax credit. Find out more: Personal income tax threshold changes

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.

Temporary tax exemption

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.

Update my income type

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.

Log in to myIR

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? 

Non-resident taxpayers

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.

Last updated: 17 Jun 2021
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