A multi-rate PIE (MRP) must be a company, superannuation fund or group investment fund that meets the general eligibility requirements and is not already a listed benefit fund or a life fund PIE .
Most MRPs need to attribute income, losses and tax credits to its investors. They pay tax based on their investors' prescribed investor rates (PIRs).
Filing methods for MRPs
There are 4 filing methods MRPs can choose from when they register.
- Work out and pay tax quarterly.
- File periodic returns quarterly and may zero-rate investors who exit the MRP during the quarter.
Daily or exit method
- Work out income and tax credits daily.
- File monthly periodic returns for investors who exit the MRP during the first 11 months of the year.
- File a periodic return for the remainder of investors after 31 March.
- Work out tax based on investors' PIRs and pay provisional tax.
- File income tax returns as usual.
- Carry forward any losses.
Responsibilities of MRPs
MRPs also file investor certificates and an annual reconciliation after the end of the income year.
If an MRP wants to change its filing method, it needs to notify us before the start of the next income year. The new filing method will apply from the start of the new tax year.
Foreign investment PIEs are MRPs
There are 2 types of MRPs for PIEs who have, or intend to have, investors who are not resident in New Zealand.
- Foreign investment zero-rate PIE.
- Foreign investment variable-rate PIE.
The general MRP rules relate to these 2 PIEs. However, these PIEs cannot elect to pay tax using the provisional tax option.