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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Introductory provisions

HM 32: Rules for and treatment of investors in multi-rate PIEs

You could also call this:

“How to pay tax on your multi-rate PIE investments”

When you invest in a multi-rate PIE, you need to tell them what tax rate to use for your investment income. If you don’t tell them, they’ll use a default rate. You can find out more about this in sections HM 56 to HM 61.

The income you get from a multi-rate PIE is considered your income under section CP 1. However, for some investors, this income might not be taxed. You can check section CX 56 to see if this applies to you.

If you’re investing in a foreign investment PIE and you want to be a notified foreign investor, you need to tell the PIE. When you do this, it’s the same as telling them your tax rate. You can find more information about this in section HM 55D(2).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888776.

Topics:
Money and consumer rights > Taxes
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HM 31: Rules for multi-rate PIEs, or

“How multi-rate PIEs handle taxes and investor payments”

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HM 33: Proxies for PIE investors, or

“How to represent a PIE investor and manage their investment”

Part H Taxation of certain entities
Portfolio investment entities: Introductory provisions

HM 32Rules for and treatment of investors in multi-rate PIEs

  1. An investor in a multi-rate PIE must notify the PIE of a tax rate applying to their investment income or have a default rate apply, see sections HM 56 to HM 61.

  2. An amount of income attributed by a multi-rate PIE to an investor in the PIE is—

  3. income of the investor under section CP 1 (Attributed income of investors in multi-rate PIEs):
    1. for certain investors, excluded income of the investor under section CX 56 (Attributed income of certain investors in multi-rate PIEs).

      1. An investor in a foreign investment PIE who notifies the PIE under section HM 55D(2) of their wish to become a notified foreign investor is treated as having notified the PIE of a tax rate under subsection (1).

      Notes
      • Section HM 32: inserted, on (applying for the 2010–11 and later income years), by section 292(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section HM 32(3) heading: added, on , by section 67(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
      • Section HM 32(3): replaced (with effect on 29 August 2011), on , by section 97 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
      • Section HM 32 list of defined terms foreign investment PIE: inserted, on , by section 67(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
      • Section HM 32 list of defined terms notified foreign investor: inserted, on , by section 67(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).