Before you invest in a portfolio investment entity (PIE) such as a KiwiSaver scheme, you will need to provide your IRD number and prescribed investor rate (PIR). Your PIR is used to calculate the tax on income derived on your KiwiSaver account. You can determine your PIR by answering the following questions:
1Generally you are a New Zealand tax resident if:
– You are in New Zealand for more than 183 days in any 12 month period;
– You have a “permanent place of abode” in New Zealand; or
– You are away from New Zealand working for the New Zealand Government.
2Previous two income years refers to the two years prior to the tax year that the PIR is being applied to. (For example, use your income for the 2017 and 2018 tax years to work out your 2019 PIR.). Your attributed PIE income or attributed PIE loss for an income year is the amount of income or loss attributed to you by PIEs in that income year, which will be recorded in the tax certificates issued to you at the end of the income year by each PIE you invest in.