Prescribed investor rates explained

Different prescribed investor rates (PIRs) apply to investors in multi-rate PIEs (MRPs). You need to use the PIR that applies to your situation to make sure you pay the correct amount of tax.

Once you have worked out your PIR you will need to give it to your PIE, along with your IRD number.

If we notice you are not using the correct PIR we will let you know. You will need to ask your PIE to change your PIR.

IRD might tell your PIE to change your rate if you have previously chosen a PIR to use. This does not remove your responsibility to let your PIE know your correct PIR.

Individual tax residents

New Zealand individuals have different PIRs depending on their worldwide income for the last two years.

The table below details requirements for each PIR. You need to work out your income for each of the last two years. You can then choose the lower PIR for the current year.

Taxable income was: and taxable income including net 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%

Non-residents

Non-resident investors that do not invest in foreign PIEs have a PIR of 28%.

Non-resident investors in a variable rate PIE have a different PIR depending on the type of investment and the country the investments are in.

Non-resident investors in a zero-rate PIE have a PIR of 0%.

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.