SuperLife

PIR tax rate guide

SuperLife workplace savings scheme, SuperLife Invest scheme, and the SuperLife KiwiSaver scheme are PIEs (portfolio investment entities). This means we deduct tax at your Prescribed Investor Rate (PIR) from your taxable income before it is added to your accounts. We pay the tax to Inland Revenue on your behalf.

Your PIR could be 10.5%, 17.5% or 28%. It is based on your total taxable income (including that from PIEs) in either of the last two tax years. Use the tax year where your total taxable income (including that from PIEs) was lower to work out your PIR.

If you do not tell us your PIR, we must apply the default rate, 28%.

To work out your individual PIR, please use our PIR calculator below or use the PIR flowchart as a guide.

 

PIR calculator

  1. In one of the last two tax years to 31 March, was your taxable income $14,000 or less?

 

PIR flowchart

PIR flowchart July 2015

 

 

Non-residents

For non-residents, the 28% PIR tax rate applies.

New residents

From 1 April 2012, you need to include your worldwide income to determine your PIR. You may choose not to include your first year or both years’ worldwide income if you expect that your taxable income in either the first or both of your first two years’ income as a resident will be significantly lower than your total income from all sources for the previous income year(s).

Trusts/Entities

A Company, an incorporated society, or PIE can use a PIR of 0% and include the income received in their tax returns.

A Registered Charitable Trust should use a PIR of 0%.

A Trust is able to choose a PIR to suit their beneficiaries. The rates can be either 0%, 17.5% or 28%.

If you are unclear how to choose the correct PIR for your trust, or if you are a trustee, or receive benefits from a trust, please seek appropriate advice from a tax consultant.

For further information please refer to Inland Revenue’s information for trustees who invest in PIEs to understand your tax obligations as a trustee when investing in a PIE and choose the appropriate PIR rate.

 

 

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FAQs

Where can I find my current PIR?

You can find the PIR we currently use in each of your statements. You can also see your PIR online if you are registered for internet access, or you can call us (0800 27 87 37) to check.

How can my PIR be changed?

From 1 April 2020, Inland Revenue can assess your PIR based on the information they have on your income. If they think your PIR is incorrect, they will advise SuperLife, and we must change it. However, if you then advise SuperLife of a different PIR, we must change it based on your advice.

When should I review my PIR?

You should review your PIR yearly (March is a good time) and tell us when there is a change.

We will continue to use your last advised PIR until you, or Inland Revenue, tells us to use a new one. We will remind you each year to check that your PIR is correct.

What if my PIR is wrong?

If you tell us that your PIR is 17.5% when it should have been 28%, or tell us 10.5% when it should have been 17.5% or 28%, we will deduct tax at the lower rate. If it turns out that your PIR is actually higher, this income must be included in your tax return (along with the corresponding tax credits).

The Inland Revenue can also instruct SuperLife to change your PIR if they assess that it is incorrect.

You should review your PIR each year to ensure it is up-to-date.

How do I change my PIR?

To change your PIR:

  • Online: www.superlife.co.nz
  • Email This email address is being protected from spambots. You need JavaScript enabled to view it. and include your name, date of birth, SuperLife member number or your IRD number.
  • Fill out a PIR advice form and send it to us.
  • Call us on 0800 27 87 37 to get a form.

What if my income changes?

If your income changes during the year, it does not affect your PIR until the next year at the earliest. Your PIR is based on the lower of your last two years’ annual income, whichever gives you the lower PIR.

Does my PIE income affect my own tax returns?

As long as we have your correct PIR, we will deduct the appropriate tax (either 10.5%, 17.5% or 28%) from the taxable investment income allocated to your accounts. There will be no more tax to pay and it doesn’t affect your tax return.

If the incorrect PIR is used, then in the income years 2020/2021 Inland Revenue will be able to adjust your tax return to reflect any overpayment or underpayment of PIE tax.

 

Detailed guide to calculating PIR

Your PIR is 10.5%, 17.5% or 28%. The default PIR is 28%. If your PIR is not 28%, you must tell us
before we can apply the lower rate.
If you are an overseas tax resident, your PIR is 28%. The 10.5% and 17.5% rates are not applicable.
Your PIR for any year is calculated based on your PIR Total Income in the two prior financial years
(1 April to 31 March). You calculate your PIR separately for each year and then choose the year that gives
you the lower PIR. For example, for the period from 1 April 2012 to 31 March 2013, you would calculate
your PIR Total Income for the year to 31 March 2012 and the year to 31 March 2011.

Your PIR is 10.5%, 17.5% or 28%. The default PIR is 28%. If your PIR is not 28%, you must advise us so we can apply the lower rate.

If you are an overseas tax resident, your PIR is 28%. The 10.5% and 17.5% rates are not applicable.

Your PIR for any year is calculated based on your total taxable income in the two prior tax years (1 April to 31 March).

You should check your total taxable income (including any net PIE income) for each year and then choose the year that gives you the lower PIR.

For example, for this tax year, 1 April 2020 to 31 March 2021, you would check your total taxable income in the years 1 April 2018 to 31 March 2019, and 1 April 2019 to 31 March 2020. The PIR you choose should be the lower of the two rates.

Please note that recent amendments to tax law enable Inland Revenue to notify us to change your PIR based on their assessment of your taxable income.

The information provided is a general guide and does not take into account your personal situation. You should seek independent professional advice from a tax adviser or speak to Inland Revenue.

 

Work out your “PIR Total Income”

To work out your PIR, you need to calculate your “PIR total income” which is your total taxable income plus your total PIE income. Enter your details to 31 March for last year, and the year before.

work out pir 2015

 

 

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