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).
You can also refer to our PIR webpage 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, any tax over-withheld will be used to reduce any income tax liability you may have for the tax year and any remaining amount will be refunded to you. Inland Revenue will notify you if you're due a refund.
If your PIR is too low, you’ll be required to pay any tax shortfall as part of the income tax year-end process.
If Inland Revenue believes your PIR with us is incorrect, they may provide us with an updated PIR for you. We’ll be required to update your profile with the new PIR.
You can subsequently change your PIR if you believe Inland Revenue hasn’t given us the correct one. You’ll also need to contact Inland Revenue and explain why you think the PIR is incorrect – you may need to provide them with updated income details for the past two years.