About PIEs.

In a regular savings account, interest on your savings is taxed at your income tax rate (up to 33%) which is based on your taxable income in the current income year (income years generally run from 1 April in any year to 31 March the following year).

When you invest through a PIE, returns on your savings are taxed at your Prescribed Investor Rate (PIR) which is capped at 28%. Your PIR is based on your total income (plus PIE income) over the last two income years. If you have provided your correct PIR, then your PIE tax is a final tax.

If your PIR is lower than your income tax rate, you will pay less tax on your savings in a PIE than in a regular savings account or term deposit. To work out your PIR see the IRD website at ird.govt.nz (search for 'correct PIR').

Next steps.

Understanding your PIR

Learn more

Investing in a PIE

See your options

Investing in KiwiSaver

Learn more

Things you should know.

To ensure you can enjoy the potential tax benefits of PIEs, you must provide your IRD number and your correct PIR when you open your account. Please review your PIR each year and if your PIR changes due to a change in circumstances, let us know straight away.

The information in this webpage is intended for general tax information and illustrative purposes only, it does not constitute tax advice, and should not be relied upon for tax purposes.

Taxation legislation, its interpretation and the rates, levels and bases of taxation may change. The application of taxation laws depends on your individual circumstances.

You should seek independent professional advice on the tax implications of your investments based on your particular circumstances .

Westpac, BT Funds Management (NZ) Limited and Trustees Executors Limited do not accept any responsibility for the tax consequences of your investment in a PIE.