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. 

From 1 April 2020, Inland Revenue will assess your PIR based on the information they have on your income. If they think your PIR is incorrect, they will provide us with an updated PIR and we must update it for you. However, you can subsequently advise us of a new PIR if you think Inland Revenue has given us an incorrect PIR.

From the 2021 tax year end onwards, Inland Revenue will automatically assess your PIE tax liability if your PIR has been incorrect at any time during the tax year. If your PIR was too high, you may receive a refund for overpaid PIE tax from Inland Revenue. However, if your PIR was too low, you will be required to pay any PIE tax shortfall using the correct PIR to Inland Revenue.

The information in this webpage is intended for general tax information purposes only, it does not constitute tax advice and should not be relied upon for tax purposes. The information is based on legislation current as at April 2020. Taxation legislation, its interpretation and the rates and bases of taxation may change. You should seek professional advice on the tax implications of investments based on your particular circumstances. Westpac accepts no responsibility for tax consequences of investments to you or any third parties. Further information on PIRs and on tax can be found on the IRD website www.ird.govt.nz.