Eligibility to be a portfolio investment entity

Your company, trust or superannuation scheme must meet all these requirements to become a portfolio investment entity (PIE).

• You must be a New Zealand resident.
• You cannot have stopped being a PIE in the last 5 years.
• Your investors, asset value and income must meet the following requirements.

Your investors

• You must have an investor class with at least 20 investors or have a specified investor, like another PIE. (This requirement does not apply to listed PIEs.)
• A single investor usually cannot hold more than 20% of investor interests in a class.
• PIEs usually should not hold more than 20% of voting or value interests in a company or investor class.

Your asset value

At least 90% of your asset value must be: 

• an interest in land
• a financial arrangement
• an excepted financial arrangement
• a right or option relating to these investment types.

Your income

At least 90% of your income must come from property under the requirements above and consist of:

• dividends
• replacement payments
• income treated under the financial arrangement rules as earned by the entity
• income under a lease of land
• earnings from the sale or transfer of property noted above
• foreign investment fund income
• income from another PIE
• income from superannuation funds
• management fee rebates.

Extra requirements for certain types

Multi-rate PIEs, listed PIEs and other sub-types must also meet extra requirements.

Multi-rate portfolio investment entity

Listed portfolio investment entity

Other portfolio investment entities