A PIE (Portfolio Investment Entity) fund is a type of New Zealand managed fund with its own tax rules. Many PIE funds calculate and pay tax on investment income using each investor’s prescribed investor rate (PIR), while some listed PIEs are taxed at a fixed rate. In many cases, income from a PIE fund does not need to be included in […]
To update or change your RWT and/or PIR rate, please email us with the relevant details, at contact@investnow.co.nz, and we will make any changes for you (includes us emailing you to confirm that this has been successfully actioned).
In September 2013, in response to growing concerns about offshore tax evasion, G20 leaders announced an initiative to implement a new global Standard for Automatic Exchange of Financial Account Information in Tax Matters (in short, Automatic Exchange of Information, or AEOI).
AEOI impose these obligations on jurisdictions and financial institutions (for AEOI purposes, known as reporting financial institutions):
Following the end of the tax year (31 March) InvestNow will provide an Annual Tax Report which includes your PIE tax summary (taxable income and tax payable), FIF calculations (FDR and CV methods) where required, and a summary of other taxable income including listed PIE dividends and term deposit interest.
Throughout the year you can download an InvestNow Tax Summary Report in order to assist you or your accountant in the preparation of your tax return. Your Multi-Rate PIE investments are not included in the Tax Summary Report as PIE tax […]
If you have any outstanding tax liability payable at the end of the tax year, we will pay this to the IRD on your behalf.
Prior to the PIE tax year end, we will send you an e-mail with a provisional calculation of your tax obligation. This will be followed by another email in early April once the final PIE calculations have been completed. You will have the option to make a deposit to cover the PIE tax payable. However, if you do not have sufficient funds available in your Transaction […]
At the time you sell any units in a PIE managed fund or at PIE tax year end (31st March) your PIE tax liability will be paid by InvestNow on your behalf and returned to the IRD.
If you are invested in listed PIE’s offered by Smart, during the year you may have received dividends from these funds. The dividends may include tax credits known as imputation credits, which are credits for NZ tax already paid by the companies the ETF is invested in, to ensure that the income isn’t […]
You can find out more on the IRD website.
The current company tax rates are:
Please visit this page on the IRD website for all current tax information.
Resident Withholding Tax (RWT) is a tax deducted from the gross amount of interest, for the relevant investment and saving products, paid to you.
When you open an InvestNow account, you will be asked to confirm your RWT rate and IRD number.
If we do not have an IRD number your account will be taxed at the “non-declaration” rate of 33%.
See the IRD website for more details.
How do I determine my correct PIR?
The Inland Revenue Department (IRD) have a really usefull calculator to help you confirm your correct Prescribed Investor Rate (PIR), available here.