What is a Prescribed Investor Rate?
A Prescribed Investor Rate (PIR) is the rate at which an investor pays tax on their share of taxable investment income from a Portfolio Investment Entity (PIE) investment. This includes investments such as the ASB KiwiSaver Scheme, ASB Term Fund and ASB Cash Fund.
Your PIR is based on your taxable income. You'll need to use the PIR that applies to your situation so you're paying the right amount of tax. You can work out your PIR on the Inland Revenue website and update it in FastNet Classic internet banking or by contacting us.
You should ensure you have the correct PIR loaded for your situation.
If you use a lower PIR, you may be required to pay the shortfall (plus any penalties and interest charged by Inland Revenue). You may also need to complete an Income Tax Assessment or income tax return at the end of the year.
If you use a PIR that is too high you will be over-paying your tax and any refund for the overpaid tax would need to be provided by Inland Revenue.
For most taxpayers, any year-end square up of PIE tax resulting from the PIR either being too low or too high, will be performed by the IRD as part of their year-end assessment process. Some taxpayers do not receive a year-end assessment and are required to file a tax return to determine any under or over-paid PIE tax.
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