KiwiSaver and investment funds are Portfolio Investment Entities (PIEs). The income you earn from your PIE investments are taxable, and the amount of tax you pay is based on your Prescribed Investor Rate (PIR).
Depending on your circumstances, your PIR may be 10.5%, 17.5% or 28% (if you’re investing as an individual).
Use our guide to work out your PIR. Alternatively, you can work out your PIR using the PIR tool on the Inland Revenue website.
You can also refer to our guide for information on PIR if you’re not investing as an individual (e.g. trust, company or partnership) or if you’re investing with someone else.
Why it’s important
It’s important to make sure your PIR is correct so your investments are taxed correctly.
- If your PIR is too high, you may pay too much tax and you won’t be able to claim back any overpaid taxdisclaimer.
- If your PIR is too low, you’ll likely be faced with an unexpected tax bill from Inland Revenue.
We may be notified by Inland Revenue to update your PIR if they believe it is incorrect. We are required to apply this updated PIR. However, you can provide us with a different PIR if you believe it is incorrect.