New Zealand PIE income: tax returns and annual square-up

Annual PIE calculations compare tax already paid with tax at the correct prescribed investor rate, and may produce a credit or debt in the tax assessment.

Resident individual PIRs

10.5%, 17.5% and 28%Inland Revenue, resident individuals' PIE income

Default where no PIR is supplied

28%Inland Revenue, resident individuals' PIE income

Income periods for current PIR

Years ending 31 March 2025 and 31 March 2026Inland Revenue, finding a prescribed investor rate

Provisional tax trigger including PIE debt

Residual income tax more than $5,000Inland Revenue, end-of-year PIE calculation

The annual assessment has a separate PIE calculation

A New Zealand tax resident with income from a multi-rate portfolio investment entity, or PIE, has a PIE calculation on the annual income tax assessment. A KiwiSaver scheme may be a multi-rate PIE. Inland Revenue determines the correct prescribed investor rate, or PIR, for the full tax year and compares tax paid with tax due. This calculation is separate from the tax calculation on taxable income. Inland Revenue, end-of-year PIE calculation (opens in a new tab).

Rate selection precedes the square-up

For resident individuals, the published PIRs are 10.5%, 17.5% and 28%. If no PIR is supplied, 28% is the default. An incorrect PIR can result in further tax at year end. A complete withdrawal during a quarter can also lead to year-end tax when the PIE files quarterly and calculates tax at a zero rate. Inland Revenue, resident individuals' PIE income (opens in a new tab).

For the current tax year ending 31 March 2027, Inland Revenue's PIR page uses income for each of the preceding 2 tax years, ending 31 March 2025 and 31 March 2026. Tax residency status also matters when determining the applicable rate. Inland Revenue, finding a prescribed investor rate (opens in a new tab).

The PIR is based on the lower rate available from either of the previous two income years. The assessment tests taxable income and taxable income plus attributed PIE income after subtracting attributed PIE losses. Net PIE losses do not reduce taxable income. Inland Revenue, IR855 resident PIE investor guide (opens in a new tab).

Credits, debts and investment losses

Too much PIE tax produces a credit that reduces income tax payable, with any remaining credit refunded. Too little PIE tax produces a debt added to income tax payable. Residual income tax including PIE debt above $5,000 triggers provisional tax for the following tax year. Inland Revenue, end-of-year PIE calculation (opens in a new tab).

A PIR above the correct rate can create a debt on an investment loss where the fund has credited more tax relief than the investor was entitled to receive. Attributed multi-rate PIE losses are included in the PIE calculation rather than claimed as deductions in the income tax return. Inland Revenue, IR855 resident PIE investor guide (opens in a new tab).

Where PIE income appears in a return

Attributed multi-rate PIE income or loss is not included in taxable income in the tax return. In myIR, a separate PIE income section is pre-populated using details from the fund, and the PIE calculation is included automatically when the return is processed. A paper IR3 also includes a PIE calculation. Listed PIE distributions chosen for inclusion go in the dividend and imputation-credit fields. Inland Revenue, IR855 resident PIE investor guide (opens in a new tab).

Working for Families and student loan income

PIE income from a locked-in retirement savings fund, such as KiwiSaver, is excluded from Working for Families and student loan income calculations. PIE income outside a locked-in fund, or a distribution from a listed PIE, must be included for those purposes. Income adjustments can be made in myIR or using the IR215 form. Inland Revenue, end-of-year PIE calculation (opens in a new tab).

Scope of this explanation

This guide covers the annual PIE assessment and general treatment of credits and debts. It does not select an individual's PIR, calculate tax on an investment loss or determine a person's tax residency. No PIE square-up calculator or worked tax return example is provided here. It does not establish a fund's classification or calculate a Working for Families entitlement, student loan obligation or provisional tax instalment.

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