A prescribed investor rate (PIR) is the rate used to calculate how much tax you’ll pay on your portfolio investment entity (PIE) taxable income. Your Investment/KiwiSaver often has a PIE component and if your PIR rate is incorrect we need you to inform us.
Depending on your circumstances, individual investors could choose a PIR of:
- 10.5%
- 17.5%
- 28%
If you are unsure of the rate you should be on, here’s how to find out:
1. Are you a New Zealand resident for tax purposes? If YES, go to question 2. If NO, then your PIR rate is 28%.
2. In either of the last two income years, was:
a) Your taxable income $14,000 or less; and
b) Your taxable income plus your net PIE $48,000 or less?
If YES, then your PIR is 10.5%
If NO, then go to question 3.
3. In either of the last two income years, was:
a) Your taxable income $48,000 or less; and
b) Your taxable income plus your net PIE income $70,000 or less; and
c) You did not qualify for the 10.5% PIR?
If YES, then your PIR is 17.5%
If NO, then go to question 4.
4. In each of the last two income years, was either:
a) Your taxable income more than $48,000, or
b) Your taxable income plus your net PIE income more than $70,000?
If YES, then your PIR is 28%
Notes:
- If you do not advise us of your IRD number and PIR, your PIR will default to 28%.
- Taxable income includes, but is not limited to, salary or wages, rental income, income from non-PIE investments (e.g. bank accounts, term deposits, shares, bonds and non-PIE managed funds and income).
If you still have questions, or you have questions about either how to calculate your PIR or our investment and kiwisaver services in general, just fill out the form below and we will be happy to get back to you.