A prescribed investor rate (PIR) is the tax rate that a multi-rate PIE (MRP) uses to work out tax on income it attributes to an investor. PIRs are only provided by an investor when they invest in an MRP.
Investors need to provide you with their PIR when opening their account . You need to apply the default PIR of 28% if no PIR is supplied.
Providing an IRD number
New investors have 6 weeks to provide you with their IRD number. If they do not, you can close their account and refund the funds.
For income attributed during the 6 weeks, you need to:
- work out tax using the default rate and pay this to us
- include any net balance in the refund of an investment.
Please ask your investors to review their PIRs every year. Investors only need to notify you if their PIR needs to change.
MRPs usually have a 31 March balance date. The income years used to work out PIRs may change if an investor's balance date is different to yours.
How investor information is handled
You need to send us your investor information by 15 May for early or standard 31 March balance dates, or 2 months after the end of their income year for late balance dates.
If you cease to be an MRP, you’re required to send the information to us within 3 months after the end of the month you cease.