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ManagedFunds.nz

Tool

What's your PIR?

The Prescribed Investor Rate is the cap on tax for managed-fund and KiwiSaver income held in a Portfolio Investment Entity (PIE). Most NZ investors should be on 17.5% or 28%. Telling your provider the wrong rate costs money — either at year-end (under-stated) or permanently (over-stated at 28%).

Inputs

Your last two income years

The PIR rules look at the LOWER of the two years' rates. NZ income years run 1 April to 31 March. Use IRD'sofficial guide to be sure.

Income year ending 31 March (most recent)
Income year ending 31 March (year before)

Result

Your correct PIR is 28%

Your income is above the 17.5% PIR thresholds in both of the past two income years.

28% is the highest PIR — but it's also the cap. Outside a PIE, the same income would be taxed at your marginal rate, which can be 33% or 39% on higher incomes. PIE structure still saves tax for higher-rate earners.

A few notes

  • Telling your fund manager / KiwiSaver provider the wrong PIR has consequences. Under-stating it means IRD will require you to pay the difference at year end. Over-stating it means you've over-paid tax (you cannot get this back if you're on 28% — only 17.5% or 10.5% over-payments are refundable).
  • If you arrived in NZ recently or had a year of low income, your PIR should usually drop. Update it with each PIE provider via your account settings.
  • This calculator is general information only, not personalised tax advice.