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Income Tax Act 2007

Schedule 6: Prescribed rates: PIE investments and retirement scheme contributions

You could also call this:

“Rates for investments and retirement contributions”

You need to know about two tables that set rates for different types of investments and contributions in New Zealand.

Table 1 shows the prescribed investor rates for people investing in multi-rate PIEs (a type of investment). The rates range from 0% to 28% depending on things like how much income you earn and whether you live in New Zealand.

Table 1B shows the rates that apply to foreign investors in variable-rate PIEs. The rates range from 0% to 30% depending on the type of income and where the investor lives.

Table 2 shows the prescribed rates for retirement scheme contributions. The rates range from 0% to 39% based mainly on how much taxable income you earn.

To use these tables, you need to find your situation in the “Conditions” column, then look at the “Prescribed rate” column to see what rate applies to you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2918738.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Savings and retirement
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6Prescribed rates: PIE investments and retirement scheme contributions

1PIE investments

  1. The prescribed investor rate for a person who is an investor in a multi-rate PIE is set out in table 1.

     
    Table 1
    This is a small table on 2 pages having 3 columns. The first row on each page is the headings for the columns. The entries in column 2 have more than 1 line of text and several have paragraphs. The entries in column 3 are on the same line as the last line of the entry in column 2, except for the row numbered 2.
    Row Conditions Prescribed rate
    1

    For a natural person who is resident in New Zealand, other than a person described in row 4 or 6.

    		0.280
    2

    For a non-resident person other than a person described in row 7B or 9.

    		0.280
    3

    For a person who—

  2. is resident in New Zealand and who derives income for the relevant tax year as a trustee of a trust other than a trust with income that is exempt income under section CW 41 or CW 42; and
    1. notifies this rate for the relevant tax year.

        		1.  0.280
        4

        For a natural person who is resident in New Zealand and is not a person described in row 6 and who, in either of the 2 income years before the relevant tax year, derives—

      1. $48,000 or less in taxable income; and
        1. $70,000 or less in the sum of their taxable income and attributed PIE income after subtracting any attributable PIE loss

            		1.  0.175
            5

            For a person who—

          1. is resident in New Zealand and derives income for the relevant tax year as a trustee of a trust other than a trust with income that is exempt income under section CW 41 or CW 42; and
            1. notifies this rate for the relevant tax year.

                		1.  0.175
                6

                For a natural person who is resident in New Zealand and who, in either of the 2 income years before the relevant tax year, derives—

              1. $14,000 or less in taxable income; and
                1. $48,000 or less in the sum of their taxable income and attributed PIE income after subtracting any attributable PIE loss.

                    		1.  0.105
                    7

                    For a person who—

                  1. is resident in New Zealand and derives income for the relevant tax year as a trustee of a testamentary trust to which section HC 37 applies other than a trust with income that is exempt income under section CW 41 or CW 42; and
                    1. notifies this rate for the relevant tax year.

                        		1.  0.105
                        7B

                        For a non-resident person who is a notified foreign investor in a foreign investment variable-rate PIE, see table 1B for the applicable rate for the amount of income.

                        		variable
                        8

                        For a person who is a zero-rated investor or an investor treated under section HM 61 as zero-rated.

                        		0.000
                        9

                        For a non-resident person who is a notified foreign investor in a foreign investment zero-rate PIE.

                        		0.000
                        10

                        For a transitional resident who is an investor in a foreign investment zero-rate PIE.

                        		0.000

                         

                        How to use this table

                        Find the applicable condition, in the second column, in order to find the relevant rate to apply, in the third column.

                      Notes
                      • Schedule 6 table 1: substituted (with effect on 1 April 2010), on , by section 122 of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).
                      • Schedule 6 table 1 row 1: amended, on , by section 39(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                      • Schedule 6 table 1 row 2: substituted, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 137(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                      • Schedule 6 table 1 row 3: amended, on , by section 39(c) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                      • Schedule 6 table 1 row 4: amended, on , by section 39(d) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                      • Schedule 6 table 1 row 5: amended, on , by section 39(e) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                      • Schedule 6 table 1 row 6: amended, on , by section 39(f) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                      • Schedule 6 table 1 row 7: amended, on , by section 39(g) of the Taxation (Budget Measures) Act 2010 (2010 No 27).
                      • Schedule 6 table 1 row 7B: inserted, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 137(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                      • Schedule 6 table 1 row 8: replaced, on , by section 163(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                      • Schedule 6 table 1 row 9: inserted, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 137(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                      • Schedule 6 table 1 row 10: added, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 137(2) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).

                      1BForeign investment variable-rate PIEs and notified foreign investors

                      1. A foreign investment variable-rate PIE must apply the prescribed investor rates set out in table 1B in relation to income attributed to notified foreign investors in the PIE.

                         
                        Table 1B
                        This is a small table having 3 columns. The first row is the headings for the columns. Most of the entries in column 2 have more than 1 line of text. The entries in column 3 are on the same line as the last line of the entry in column 2.
                        Row Amounts Prescribed rate
                        1

                        To the extent to which it is not fully imputed, a dividend derived from a company resident in New Zealand attributed to an investor who does not reside in a country with which New Zealand has a double tax agreement that provides a rate for withholding an amount of NRWT for dividends that is less than that provided by section RF 8(2).

                        		0.3000
                        2

                        An amount other than an amount referred to in rows 1, 3 to 7, and 9 that has a source in New Zealand.

                        		0.2800
                        3

                        To the extent to which it is not fully imputed, a dividend derived from a company resident in New Zealand attributed to an investor who resides in a country with which New Zealand has a double tax agreement that provides a rate for withholding an amount of NRWT for dividends that is less than that provided by section RF 8(2).

                        		0.1500
                        4

                        A fully imputed dividend derived from a company resident in New Zealand in relation to which a supplementary dividend is paid.

                        		0.1500
                        5

                        A supplementary dividend.

                        		0.1500
                        6

                        Interest derived under a financial arrangement, being an amount referred to in the definition of interest, paragraph (a) or (b), that has a source in New Zealand and is of an amount calculated under subpart EW.

                        		0.0144
                        7

                        A fully imputed dividend derived from a company resident in New Zealand, other than a dividend in relation to which a supplementary dividend is paid.

                        		0.0000
                        8

                        A foreign-sourced amount.

                        		0.0000
                        9

                        An amount derived under a financial arrangement that has a source in New Zealand other than an amount of interest referred to in row 6.

                        		0.0000

                      Notes
                      • Schedule 6 clause 1B: inserted, on (applying for the 2012–13 and later income years for a foreign investment variable-rate PIE and a notified foreign investor in the PIE), by section 137(3) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                      • Schedule 6 table 1B: replaced, on (applying for the 2013–14 and later income years), by section 163(3) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).
                      • Schedule 6 table 1B row 1: amended (with effect on 1 April 2012 and applying for the 2012–13 and later income years but not applying for a dividend attributed to an investor by a PIE before 26 February 2015, if the PIE takes, before that date, a tax position for the dividend relying on the table amended by section 237 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 as it was immediately before the amendments made by section 237 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016), on , by section 237(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                      • Schedule 6 table 1B row 3: amended (with effect on 1 April 2012 and applying for the 2012–13 and later income years but not applying for a dividend attributed to an investor by a PIE before 26 February 2015, if the PIE takes, before that date, a tax position for the dividend relying on the table amended by section 237 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 as it was immediately before the amendments made by section 237 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016), on , by section 237(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                      • Schedule 6 table 1B row 9: amended, on (with effect on 1 April 2012 and applying for the 2012–13 and later income years), by section 253(1) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).

                      2Retirement scheme contributions

                      1. The retirement scheme prescribed rate for a person in relation to a retirement scheme contribution made for them is set out in table 2.

                         
                        Table 2
                        The following table is small in size and has 3 columns. Column 1 is headed Row. Column 2 is headed Condition. Column 3 is headed Prescribed rate.
                        Row Conditions Prescribed rate
                        1

                        For a person other than a person described in any of rows 2 to 8.

                        		0.390
                        2

                        For a person who, in either of the 2 income years before the income year in which the contribution is made, derives more than $70,000 but not more than $180,000 in taxable income.

                        		0.330
                        3

                        For a person who is not a person described in row 2 and who, in either of the 2 income years before the income year in which the contribution is made, derives more than $48,000 but not more than $70,000 in taxable income.

                        		0.300
                        4

                        For a person who is not a person described in row 2 or 3 and who, in either of the 2 income years before the income year in which the contribution is made, derives more than $14,000 but not more than $48,000 in taxable income.

                        		0.175
                        5

                        For a person who is not a person described in row 2, 3, or 4 and who, in either of the 2 income years before the income year in which the contribution is made, derives taxable income of $14,000 or less.

                        		0.105
                        6

                        For a non-resident person to whom a distribution of no more than $200 is made by a retirement scheme contributor that is a Maori authority.

                        		0.105
                        7

                        For a non-resident person who supplies a retirement scheme contributor that is a Maori authority with a notice under section 28C of the Tax Administration Act 1994.

                        		0.105
                        8

                        For a non-resident person in relation to a contribution that consists of non-resident passive income.

                        		0.000

                         

                        How to use this table

                        Find the applicable condition in the second column, in order to find the relevant rate to apply, in the third column.

                      Notes
                      • Schedule 6 table 2: replaced, on , by section 25 (and see section 3 for application) of the Taxation (Income Tax Rate and Other Amendments) Act 2020 (2020 No 65).