More about PIR (Prescribed Investor Rate)

The Westpac KiwiSaver Scheme is a Portfolio Investment Entity (PIE) for tax purposes. This means that:

  • we'll calculate the amount of taxable income (or loss) as well as any tax credits or other amounts attributable to you from the Westpac KiwiSaver Scheme; and
  • we'll pay tax on the taxable income attributed to you at your notified PIR.

You'll need to provide both your IRD number and your PIR, otherwise the highest PIR will apply.

Your PIR will be one of:

10.5%

If you're 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're 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're 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 IRD number and PIR

It's very important to let us know your IRD number and correct PIR. 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 invested prior to 1 April 2018 and don't provide your IRD number and PIR, 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're 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 PIR Inland Revenue considers appropriate.

It's easy to update your PIR in Westpac One®  online banking

You can update your PIR through Westpac One online banking at any time. If we don't already have your IRD number, you'll also need to know this. To update your PIR, just login to Westpac One and follow these steps:

  1. Select Profile
  2. Select Tax Details
  3. Answer the tax residency questions
  4. Enter your IRD Number
  5. Select your Withholding Tax Rate
  6. Select your PIR
  7. Hit Save

 PIR screenshot

Other ways you can update your PIR include:

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 July 2019. 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 Inland Revenue's website www.ird.govt.nz.