Disclaimer
A copy of the Investment Statement for the FirstChoice KiwiSaver Scheme ("FirstChoice KiwiSaver") is available here or by calling 0800 1ST CHOICE (0800 178 246).
Calculate your Prescribed Investor Rate
The Government made changes on 1 April 2010 to align Prescribed Investor Rates (PIRs) with personal tax rates. Not everyone is affected by the changes, but it's important to take the time to read the table below to check you are on the correct tax rate.
PIE regime
FirstChoice KiwiSaver is a portfolio investment entity ( PIE ). This means that FirstChoice KiwiSaver will pay tax on your share of the income earned by the Investment Funds at your PIR.
Your PIR is the rate at which your share o taxable income earned in a PIE will be taxed.
Your PIR can be determined as follows:
| New Zealand tax resident individuals | Your PIR is |
|---|---|
| If in either of the two tax years (ending 31 March) | |
| taxable income of $14,000 or less and taxable income plus PIE income of $48,000 or less | 12.5% |
| taxable income of $14,000 or less and taxable income plus PIE income of more than $48,000 but not more than $70,000* | 21% |
| taxable income of more than $14,000 but not more than $48,000 and taxable income plus PIE income of $70,000 or less* | 21% |
| Or, if over both of the last two years to 31 March you had: | |
| taxable income of more than $48,000* | 30% |
| taxable income plus PIE income of more than $70,000* | 30% |
| Non New Zealand tax resident individuals | |
| If you are not a New Zealand tax resident individual | 30% |
| Examples of non-PIE taxable income: | Examples of PIE taxable income: |
|---|---|
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* In December 2009 legislation was passed to amend the PIR rates with effect from 1 April 2010. That legislation contained a number of errors in relation to the PIR rates. As at the date of the current Investment Statement the Manager understands that it is intended that remedial legislation be passed to correct those errors with retrospective effect from 1 April 2010. The PIR rates in the table reflect the rates that are intended to apply from 1 April 2010, once the remedial legislation has been passed.
If you do not provide the Manager with your PIR and IRD number, then any taxable income allocated to you will be taxed at 30%.
If you advise us of a change in your PIR, the new PIR will apply to your share of taxable income earned in FirstChoice KiwiSaver that has not already been taxed.
If your PIR changes and you do not advise us during the current tax year, or you provide us with the wrong PIR, you may end up paying too much tax on your share of taxable income or you may have to file a tax return and pay further tax (together with any interest and penalties). Where tax on your share of taxable income has been overpaid as a result of you providing an incorrect PIR, the overpaid tax cannot be recovered.
There is no impact on eligibility for family assistance, student loan repayment obligations or child support payment obligations as a result of investing in a PIE.
Additional information can also be obtained by contacting us on 0800 1ST CHOICE (0800 178 246) or email firstchoice@asb.co.nz
Disclaimer
The information shown on this page does not constitute specific tax advice to any person. ASB Group Investments Limited ("ASBGI") recommends that investors seek independent advice. Neither the Trustee, nor ASBGI, its related companies, nor their directors, officers or employees accept any liability for any loss or damage of any kind arising out of the use of or reliance on the information provided in the above diagram, including without limitation, any loss of profit or other damage, direct or consequential.
