Portfolio Investment Entity (PIE) Investments

Do you know if you are on the right PIR rate when you have an investment in a PIE?

The PIR rate for NZ tax resident individuals is a prescribed rate based on two tests on your income in the last two years (not including the current years income levels).  The prescribed rates are 10.5%, 17.5% and a maximum of 28%.

What happens when you are on the wrong amount?

For any taxpayer that has PIE investments, from the 2021 tax year we need to determine at year end if you have underpaid or overpaid tax and then make an adjustment accordingly.  The problem gets resolved, however it is easier to get it right from the beginning.  To change a PIR rate you need to contact the investment provider.

Your PIR rate is determined based on the lower rate from either of the last 2 years income (ie. 2020 and 2021 for the 2022 year).