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Prescribed investor rate

There are several different types of portfolio investment entities (PIE). The only time you'll need to provide a prescribed investor rate is when you invest in a multi-rate PIE (MRP). If you aren't sure if the PIE is an MRP you should contact them to confirm.

If you've invested in, or are considering investing in, a PIE such as a KiwiSaver scheme, you'll need a prescribed investor rate to give to the MRP with your IRD number.

Prescribed investor rate (PIR)

A PIR is the tax rate an MRP uses to work out tax on the income from your investment. You'll need to have provided your IRD number. Your PIR is determined using:

  • either of your last two years of taxable income,  and
  • attributed PIE income.

Make sure you're using the correct prescribed investor rate (PIR)

Providing your prescribed investor rate

When you first invest in an MRP you have six weeks to provide your PIR and IRD number. The MRP will tell you how to provide this to them. If you don't provide these, the PIE must close your account and refund the investment.

If you've attributed any income in those six weeks the MRP will:

  • work out the tax using the default rate and pay this to us, and
  • include any net balance in the refund of your investment.

Updating your prescribed investor rate

You should review your PIR every year, before the beginning of the MRP's income year. For most MRPs this is generally 1 April.

You only need to tell the MRP if your rate changes. If it does change you should give the MRP your new PIR before the start of their income year.

Multi-rate PIE balance dates

This will be on the investor statement that the PIE sends you. If it isn't, you'll need to ask them for it.

Most MRPs have a 31 March balance date. The income years you use to work out your PIR may change if your balance date is different to the MRP's.

Receiving information from the PIE about your PIE income

Generally PIEs need to send you the information by 30 June following their tax year if they are a:

  • superannuation fund, or
  • retirement savings scheme such as a KiwiSaver.  

Other MRPs need to provide the information by 31 May.

If the MRP doesn't use the PIR you give them

If the MRP doesn't apply the PIR you provided you should contact them as soon as possible.

They may be able to adjust for the correct amount of tax if they haven't worked out their tax for the period yet.

Entities that aren't multi-rate PIEs

The following types of PIE don't need to use your PIR:

  • listed PIE
  • benefit fund PIE, or
  • certain life fund PIE.