More about PIR

All funds administered by BT Funds Management (NZ) Limited are Portfolio Investment Entities (PIE) for tax purposes.

This means that:

  • we will calculate the amount of taxable income (or loss) and any tax credits or other amounts attributable to you from your investment ; and
  • we will pay tax on the taxable income attributed to you at your PIR.

You must provide both your IRD number and your PIR, otherwise the highest PIR will apply.

For individuals

Your PIR will be one of:

10.5%

If you are a New Zealand tax resident and in either one of the last two income years:

  • Your taxable income (excluding income from PIEs) was $14,000 or less; and
  • Your total income (including PIE income after subtracting PIE losses) was $48,000 or less.

17.5%

If you are a New Zealand tax resident and you don't qualify for the 10.5% rate but in either of the last two income years:

  • Your taxable income (excluding income from PIEs) was $48,000 or less; and
  • Your total income (including PIE income after subtracting PIE losses) was $70,000 or less.

28%

If you don't meet the requirements for the 10.5% or 17.5% rates (or you fail to notify a PIR or your IRD number) or you are not a New Zealand tax resident.

Joint Investors

Joint investors will be treated as a single investor with a PIR equal to the highest PIR of the joint investors. If you are a joint investor, you will both need to provide us with your PIR and IRD number or tax will be deducted at the highest PIR.

For non-individuals (NZ tax residents)


Your PIR will be one of;

0%

If you are a company, incorporated society, PIE, PIE investor proxy (PIP) or registered charitable trust. You will need to pay any tax on your attributed PIE income yourself. If you are uncertain, you should seek advice from a tax specialist.

either 28%, 17.5%, 10.5% or 0%.

If you are a trustee (excluding registered charitable trusts), Superannuation fund, partnership or unincorporated society. If you are uncertain, you should seek advice from a tax specialist to help you choose the right PIR.

28%

If you fail to notify us of your PIR or your IRD number, or you are not a New Zealand tax resident,

Income years generally run from 1 April in any year to 31 March the following year.

Non-New Zealand income counts when calculating your PIR


When you work out your PIR, you must include non-New Zealand sourced income in calculating your taxable income for any particular income year – even if you weren't a tax resident in New Zealand when that income was earned. This is especially important for new residents to consider. In some cases, new residents can elect out of this treatment. Simply visit Inland Revenue's website www.ird.govt.nz to find out more.

It's important to let us know your correct PIR and IRD number

It's very important to let us know your correct PIR and IRD number when you apply. If your notified PIR is too low, you may need to pay any tax shortfall at your income tax rate (plus any interest and penalties) and file a tax return. If your notified PIR is too high, you can't claim back any excess tax we pay on your behalf because PIE tax is a final tax in this situation. If you don't provide your PIR and your correct IRD number, then all taxable income attributed to you will be taxed at 28%. Finally, it is important to let us know if your PIR changes to ensure you are not under or over taxed..

Please note: Inland Revenue can require us to disregard your notified PIR if it considers the rate is incorrect. If this is the case, we must apply whichever rate Inland Revenue considers appropriate.

The information in this guide is intended for general tax information purposes only and does not constitute tax advice. You should not rely upon the content of this information. The information is based on legislation current as at September 2017. Taxation legislation, its interpretation and the rates and bases of taxation may change. The application of taxation laws depends upon individual circumstances. Any investors and potential investors should seek professional advice on the taxation implications of investing and should not rely solely on the information in this guide. Further information on PIRs and on tax can be found on the IRD website www.ird.govt.nz.