A prescribed investor rate (PIR) is the tax rate that a multi-rate PIE (MRP) uses to work out tax on income it attributes to an investor. PIRs are only provided by an investor when they invest in an MRP.
Find my prescribed investor rate (PIR)
Using PIRs
Investors need to:
- tell the MRP their PIR and IRD number when they open their PIE account
- ask their investors to review their PIR every year
- tell the MRP if their PIR needs to change (this is for investors who have already given their PIR).
The default of 28% is used if no PIR is given.
Providing an IRD number
New investors have 6 weeks to provide you with their IRD number. If they do not, you can close their account and refund the funds minus any tax.
For income attributed during the 6 weeks, the MRP must:
- work out tax using the given PIR (if any), or the default rate, and pay this to us
- include any net balance in the refund of an investment.
Balance dates
MRPs usually have a 31 March balance date. The income years used to work out PIRs may change if an investor's balance date is different to the MRP's. The same applies when a provisional tax MRP has a non-standard balance date.
How investor information is handled
MRPs with early or standard 31 March balance dates need to send us their investor information by 15 May following the end of the tax year. MRPs with late balance dates need to send us their investor information within 2 months after the end of their income year.
If the MRP ceases to be a PIE, they must send us the information within 3 months after the end of the month in which they cease.