What is PIR?

What is a Prescribed Investor Rate (PIR)?

If you have invested in, or are considering investing in, a portfolio investment entity (PIE) such as a KiwiSaver scheme, then you will need to provide your IRD number and your prescribed investor rate (PIR). 

Your PIR determines the rate that your share of the taxable investment income from the PIE will be taxed.  There are four possible rates (from 1 October 2010) 0%, 10.5%, 17.5% and 28%.

If you do not provide your PIR or IRD number your investment will be taxed at the default rate of 28%.

What is my Prescribed Investor Rate (PIR)?

Individuals (extract from IRD website)

PIR Picture

Other Investors (extract from IRD website)

PIR Picture2

Benefits for investors in the top tax bracket (33%)?

Investors who have a marginal tax rate of 33% but invest in a PIE with a PIR rate of 28% do not pay more tax as a result of their investment.  The tax payable on taxable investment income derived through a PIE will be capped at 28% - this is a final tax!

For more information in relation to any of the above please call the CT help desk on 0800 883 718 or alternatively refer to the IRD website at www.ird.govt.nz