Is your prescribed PIR (Prescribed Investor Rate) set correctly? Keep in mind that if you are an individual and have a temporary 4-year tax exemption, you can use a 0% PIR if you invest in a zero-rate IPA. If you want to change your plan today, go to My SAP to log in. A prescribed investor rate (PIC) is the rate used to calculate the amount of tax you pay on the taxable income of your holding investment corporation (PIA). A trust is able to choose a PIP that is suitable for its beneficiaries. Rates can be 0%, 17.5% or 28%. If you do not provide us with your PIR, we will have to apply the standard rate of 28%. Before investing in a portfolio investment company (PIE) such as a KiwiSaver program or managed fund, you must provide your IRD number and prescribed investor rate (PIR). Your IRP is used to calculate income tax on your investments. A business, registered corporation or PPE can use a 0% IPR and include the income received on their tax returns. If you are a tax resident abroad, your PIR is 28%. The rates of 10.5% and 17.5% are not applicable.
If you are applying for an escrow account, you can calculate the IRP rate by clicking here. You can use the following questions to determine the prescribed investor rate (PER) that applies to you. Example: You invested in a multi-rate IPA in June 2021. The IRE, which applies to your investments for the current tax year ending March 31, 2023, is based on your income for each of the last 2 tax years that ended: With KiwiSaver, the tax rate you pay is called the prescribed investor rate (PER) and the rate is largely determined by how much you earn. The current tax rates for KiwiSaver are 28%, 17.5% and 10.5%. It`s a good idea to check if you`re using the right PIR, because paying taxes at the wrong tax rate is like carrying the wrong hiking backpack – you`re carrying too much or too little. To make sure you`re carrying the right load, use our simple PIR guide. To calculate your PIR rate, simply look for where you fit in the table below: ANZ`s KiwiSaver systems, ANZ mutual funds, OneAnswer single asset class funds, OneAnswer multi-asset class funds, SIL Mutual Scheme, SIL Employer Scheme, MFL Mutual Scheme and ANZ PIE Fund are portfolio investment entities (PIEs). PIAs are subject to special tax regulations that can provide investors with better after-tax returns. A PIR is the tax rate we use to determine how much tax you pay on the income you earn from these investments. For example, for this tax year, April 1, 2020 to March 31, 2021, you will examine your total taxable income for the years April 1, 2018 to March 31, 2019 and April 1, 2019 to March 31, 2020.
The PIR you choose should be the lower of the two rates. For more information, see Tax Administration Information for Trustees Investing in PIIs to understand your tax obligations as a trustee when investing in an IPA and to select the appropriate PIP rate. Their PIR is 10.5%, 17.5% or 28%. The default IREP is 28%. If your PIR is not 28%, you must inform us so that we can apply the lower rate. If you tell us that your PIR is 17.5% when it should have been 28%, or tell us 10.5% when it should have been 17.5% or 28%, we will deduct the tax at the lower rate. If it turns out that your IRP is actually higher, this income must be included on your tax return (along with the corresponding tax credits). Your PIR determines the tax you pay on the income from your KiwiSaver investment. The tax rate you pay is based on your income. The mortality rate is 10.5%, 17.5% or 28%. A prescribed investor rate (PIR) is the rate at which an investor pays taxes on their share of taxable investment income from an investment made by a holding investment company (PIA).
These include investments such as the ASB KiwiSaver program, the ASB term fund and the ASB treasury fund. You should look at your total taxable income (including any net PIA income) for each year and then choose the year that gives you the lowest RIF. A registered charitable trust should use a 0% RIP. If you use a lower IREP, you may have to pay the shortfall (plus penalties and interest charged by the IRS). You may also need to file an income tax assessment or tax return at the end of the year. The IRS may also ask SuperLife to change your PIR if it determines it is incorrect. Before answering these questions, you need to know your tax residency status. If you pay too much tax on your KiwiSaver account, you will not be able to get it back. And if you don`t pay enough taxes, you`ll have to complete it. If you have problems accessing these settings, you can call us Monday to Friday from 9am to 5pm on 0800 267 005. When you log in to your KiwiSaver account, you should be able to see the PIR registered for you.
Or you can contact IRD. The tax administration can inform the AMP directly if they think you have the wrong PIR. In this case, we are obliged to update your profile with the proposed PIR. You can then call us if you think the tax office has misunderstood something. In this case, we also recommend that you contact the tax authorities to ensure that they have the correct income data for you. Based on the information you provide, your IREP is 10.5% 17.5% 28% You should review your IRP annually to make sure it is up to date. ANZ New Zealand Investments Limited is the issuer and manager of the ANZ KiwiSaver programme, the ANZ Default KiwiSaver programme and ANZ investment funds. Important information can be found in the terms and conditions.
Download the product disclosure guide and statement. You need to make sure that you have loaded the correct PIR for your situation. Please note that recent changes to tax legislation allow the tax authorities to notify us to change your PIR based on their assessment of your taxable income. – You have a «permanent residence» in New Zealand; or If you use too high a PIR, you pay too much tax and any refund of the overpaid tax should be made by the tax office. It`s a good idea to check your PIP every March towards the end of the fiscal year. If your income has gone up or down, you may now be on the wrong IRP. Before your PIR can be applied to your investments, you must also provide us with your IRD number. This must be communicated to us within six weeks of the opening of a new EIP investment.
If you fail to do so, we are required by law to close your account and refund the balance to you. If you prefer to use a form, you can download it here. The information provided is a general guide and does not take into account your personal situation. You should seek advice from an independent tax advisor or speak to the tax authority. See important information about the products mentioned: To calculate your PIR, you need to calculate your «total IRP income», which is your total taxable income plus your total PIE income. Enter your dates before March 31 for the last year and the previous year. – you are staying in New Zealand for more than 183 days in any 12-month period; You may be able to change it yourself on your KiwiSaver account portal. Otherwise, simply contact your KiwiSaver provider or the IRD.
– Was your taxable income $14,000 or less, AND – Was your total income (taxable income and PIA income) $48,000 or less? If you are unsure how to choose the right IRP for your trust, or if you are a trustee or receiving benefits from a trust, please seek advice from a tax advisor. To calculate your individual PIR, please use our PIR calculator below or use the PIR flowchart as a guide.