PIR

Your Prescribed Investor Rate (PIR) is the tax rate applied to income earned from Portfolio Investment Entities (PIEs), including KiwiSaver funds, PIE term deposits, and managed funds. The three PIR rates are 10.5%, 17.5%, and 28%.

Your correct PIR depends on your taxable income over the past two years. If your taxable income (including PIE income) was $15,600 or less, your PIR is 10.5%. If it was between $15,601 and $53,500, your PIR is 17.5%. If it was above $53,500, your PIR is 28%.

It's critical to use the correct PIR. If you use a rate that's too low, IRD will charge you the difference. If you use a rate that's too high, you cannot get a refund — the overpayment is lost. You should review your PIR each year, especially if your income has changed, and update it with your KiwiSaver or fund provider.