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Income Tax Act 2007

Taxation of certain entities - Portfolio investment entities - Prescribed and notified rates for investors in multi-rate PIEs

HM 57: Prescribed investor rates for certain investors: 0%

You could also call this:

“Some investors in multi-rate PIEs pay 0% tax on their investment income”

If you’re an investor in a multi-rate PIE (a type of investment), you might have a prescribed investor rate of 0%. This means you don’t have to pay tax on your investment income from the PIE. You can have this 0% rate if you live in New Zealand and you’re:

A company.

An organisation or trust that doesn’t have to pay tax because it’s a charity.

Someone acting on behalf of others in the investment.

A PIE or superannuation fund, but not if you’re a trustee who chooses a different rate from a specific list.

Someone who earns income as a trustee and doesn’t choose a rate from a specific list.

If you fall into any of these categories, you’re called a “zero-rated investor” because your prescribed rate is 0%.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888836.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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HM 56: Prescribed investor rates: schedular rates, or

“How the government sets tax rates for certain investments”

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HM 57B: Prescribed investor rates for new residents, or

“How new residents' investment tax rates are determined”

Part H Taxation of certain entities
Portfolio investment entities: Prescribed and notified rates for investors in multi-rate PIEs

HM 57Prescribed investor rates for certain investors: 0%

  1. An investor (a zero-rated investor) in a multi-rate PIE has a prescribed investor rate of 0% if they are resident in New Zealand and are—

  2. a company:
    1. an organisation or trust with income that is exempt income under section CW 41 or CW 42 (which relate to charities):
      1. a proxy acting under section HM 33:
          1. a PIE or superannuation fund, other than a trustee who chooses a rate under schedule 6, table 1, row 3 or 5 (Prescribed rates: PIE investments and retirement scheme contributions):
            1. a person who derives income as a trustee and does not choose a rate under schedule 6, table 1, row 3, 5, or 7.

              Notes
              • Section HM 57: substituted, on (applying for the 2010–11 and later income years), by section 49(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
              • Section HM 57(d): repealed, on , by section 108 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).