Is a PIE right for you?
Consider your circumstances.
Individual investors currently earning over $48,000 of taxable income
Note - includes those holding a joint account.
If you are an individual currently earning over $48,000 of taxable income, your Prescribed Investor Rate (PIR) will be capped at 28% and will be lower than your income tax rate - allowing you to benefit from a tax saving.
|Taxable income1||Income tax rate
(on deposits in
|Prescribed Investor Rate (PIR)||Tax benefit on your PIE returns|
|Over $48,000 and up to $70,000||30%||28%||2%|
1 Examples of taxable income include salary, wages, commission, NZ Super, rent, interest and dividends, student allowances, parental leave, tips and gratuities. When calculating your taxable income to determine your PIR, you must also include non-New Zealand sourced income for the relevant income year, even if you were not a New Zealand tax resident when it was earned. New residents will be able to elect out of this treatment in some cases, see www.ird.govt.nz. For individuals, taxable income does not include PIE income that has been subject to a final tax from PIE compliant KiwiSaver schemes and managed funds.
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 on 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 and bases of taxation may change. You should seek professional advice on the tax implications of investments based on your particular 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.