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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 60: Notified investor rates

You could also call this:

“How to tell a PIE your tax rate for investments”

You can tell a multi-rate PIE your investor rate if you’re not a notified foreign investor and have given them your tax file number. This is called your notified investor rate.

You need to tell the PIE your rate before the end of the relevant period.

The PIE must use your most recent notified investor rate every day starting from when they get your notice or the start of the calculation period, whichever is later.

If the PIE has already paid tax for you voluntarily, they don’t have to use your new rate unless it applies to that payment.

For the 2010-11 income year, PIEs used different rates before and after 1 October 2010.

PIEs must use the same approach for all investors in an income year when applying notified investor rates.

If you tell the PIE a rate that’s lower than what you should use, any income they attribute to you won’t be excluded income under section CX 56.

If you don’t tell the PIE your rate and the Commissioner hasn’t provided one, the rate will be 28%.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2888843.

Topics:
Money and consumer rights > Taxes
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HM 59: Prescribed investor rates for certain investors: 0%, or

“This rule about 0% tax rates for some investors no longer applies”

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HM 60B: Investor rates provided by Commissioner, or

“Inland Revenue can set your PIE tax rate if needed”

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

HM 60Notified investor rates

  1. Despite sections HM 56 to HM 58, an investor other than a notified foreign investor who has provided their tax file number to a multi-rate PIE may notify the PIE of the investor rate to be applied for a period (the notified investor rate).

  2. The investor must give notice before the end of the relevant period.

  3. For an investor for an income year, a multi-rate PIE must apply the most recent notified investor rate to every day in the calculation period beginning with—

  4. the later of—
    1. the day after the day on which the multi-rate PIE receives the notice:
      1. the first day of the calculation period for which the notified investor rate is supplied; or
      2. the first day of the calculation period in which the multi-rate PIE receives the notice.

        1. Subsection (3) does not apply if the PIE has made a voluntary payment of tax under section HM 45 that is intended to satisfy its income tax liability for a period in relation to the investor unless the rate last notified applies to the voluntary payment.

        2. For the 2010–11 income year, a multi-rate PIE,—

        3. for a day before 1 October 2010, may apply a notified investor rate corresponding to the most recent notified investor rate, ignoring the Taxation (Budget Measures) Act 2010:
          1. for a day on or after 1 October 2010, must apply the most recent notified investor rate on or after 1 October 2010.

            1. In applying notified investor rates, a multi-rate PIE must use the same approach under subsections (3) and (3C) for all investors for an income year.

            2. If an investor advises a notified investor rate that is lower than their prescribed investor rate that would apply under sections HM 56 to HM 58, income attributed to them by the PIE is not excluded income of the investor under section CX 56 (Attributed income of certain investors in multi-rate PIEs).

            3. Repealed

            4. If an investor does not advise a multi-rate PIE of their notified investor rate, and the Commissioner has not provided a rate for the investor under section HM 60B, the rate applying for a period is 28%.

            Compare
            • s YA 1 portfolio investor rate, prescribed investor rate
            Notes
            • Section HM 60: 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 60 heading: substituted, on (applying for the 2010–11 and later income years), by section 50(1) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
            • Section HM 60(1): amended, on , by section 101(1) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
            • Section HM 60(1): amended, on , by section 82(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
            • Section HM 60(1): amended, on (applying for the 2010–11 and later income years), by section 50(2)(a) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
            • Section HM 60(1): amended, on (applying for the 2010–11 and later income years), by section 50(2)(b) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
            • Section HM 60(3) heading: substituted, on , by section 9(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
            • Section HM 60(3): replaced (with effect on 1 October 2010 and applying for the 2010–11 and later income years), on , by section 66(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
            • Section HM 60(3B) heading: inserted, on , by section 72(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
            • Section HM 60(3B): inserted, on , by section 72(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
            • Section HM 60(3B): amended (with effect on 1 October 2010 and applying for the 2010–11 and later income years), on , by section 66(2) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
            • Section HM 60(3C) heading: inserted (with effect on 1 October 2010 and applying for the 2010–11 and later income years), on , by section 66(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
            • Section HM 60(3C): inserted (with effect on 1 October 2010 and applying for the 2010–11 and later income years), on , by section 66(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
            • Section HM 60(3D) heading: inserted (with effect on 1 October 2010 and applying for the 2010–11 and later income years), on , by section 66(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
            • Section HM 60(3D): inserted (with effect on 1 October 2010 and applying for the 2010–11 and later income years), on , by section 66(3) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
            • Section HM 60(4) heading: amended, on (applying for the 2010–11 and later income years), by section 50(3)(a) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
            • Section HM 60(4): amended, on , by section 101(2) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
            • Section HM 60(4): amended, on , by section 151(1) (and see section 151(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
            • Section HM 60(4): amended (with effect on 1 April 2010), on (applying for the 2010–11 and later income years), by section 72(3) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
            • Section HM 60(4): amended, on (applying for the 2010–11 and later income years), by section 50(3)(b) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
            • Section HM 60(4): amended, on (applying for the 2010–11 and later income years), by section 50(3)(c) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
            • Section HM 60(5) heading: repealed, on , pursuant to section 151(2) (and see section 151(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
            • Section HM 60(5): repealed, on , by section 151(2) (and see section 151(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
            • Section HM 60(6): amended, on , by section 151(3) (and see section 151(5) for application) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
            • Section HM 60(6): amended, on , by section 9(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
            • Section HM 60(6): amended, on (applying for the 2010–11 and later income years), by section 50(5) of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).
            • Section HM 60 list of defined terms natural person: inserted, on , by section 151(4) of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).
            • Section HM 60 list of defined terms notice: inserted, on , by section 74 of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
            • Section HM 60 list of defined terms notified foreign investor: inserted, on , by section 82(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).