Portfolio Investment Entities (PIE’s) operate under special tax rules which may deliver better after-tax returns for investors. A PIR is the tax rate that we use to work out how much tax to pay on the income you earn from these investments. You’ll need to work out your PIR.
Why is it important?
You need to tell us your PIR and let us know if it changes. It’s important to give us the right PIR so your investments are taxed correctly:
- If your PIR is too high, too much tax may be paid on your investments. The tax paid is treated as final and you won’t be able to claim a refund from Inland Revenue.
- If your PIR is too low, you will need to file a tax return and pay any tax shortfall, interest and penalties to Inland Revenue. Any tax already paid will be available as a tax credit.
Your IRD number
Before your PIR can be applied to your investments, you also need to tell us your IRD number. This must be provided to us within six weeks of opening a new investment in the ANZ PIE Fund. If you don’t, we’re required by law to close your account and refund the balance to you.
For investments opened before 1 April 2018, if we do not hold your IRD number your account will not be closed but the highest PIR of 28% will be applied.