On 1 April 2010 changes to Portfolio Investment Entity (PIE) tax rates took effect, aligning these rates with changes made to personal tax rates.
As of 1 October 2010 PIE tax rates will change again. The new Prescribed Investor Rate (PIR) options will be 10.5%, 17.5% and 28%. These changes will be applied automatically and will apply to the taxable income that arises after 1 October 2010.
Prescribed Investor Rate changes
The PIRs and income thresholds for clients in AXA products such as the AXA KiwiSaver Scheme, AXA Personal Superannuation Scheme, AXA Business Superannuation Scheme and ASPIRE State Sector Retirement Savings Scheme, have been changed. The new PIRs and income thresholds that will apply to individuals for the year ending 31 March 2010 are as follows:
|
If your taxable income was… |
your taxable income plus your PIE income or loss was… |
your PIR is…* |
|
$14,000 or less, and |
$48,000 or less in either of the previous two income years, then |
12.5% (10.5% as from 1 October 2010) |
|
$14,000 or less, and |
$48,001 - $70,000 in either of the previous two income years, then |
21% (17.5% as from 1 October 2010) |
|
$14,000 or less in either or both of the previous two income years, and |
$70,001 or more in both of the previous two income years, then |
30% (28% as from 1 October 2010) |
|
$14,001 - $48,000, and |
$70,000 or less in either of the previous two income years, then |
21% (17.5% as from 1 October 2010) |
|
$14,001 - $48,000 in either or both of the two previous income years, and |
$70,001 or more in both of the previous two income years, then |
30% (28% as from 1 October 2010) |
|
More than $48,001 in both of the previous two income years, and |
any amount, then |
30% (28% as from 1 October 2010) |
|
Non Resident |
|
30% (28% as from 1 October 2010) |
* Don't forget that AXA will automatically change your PIR to the new rate from 1 October 2010.
What do I need to do?
From 1 October 2010, AXA will automatically change your PIR to the lower rate in the table above. For example the 12.5% rate will be changed to the 10.5% rate, the 21% rate to the 17.5% rate and the 30% rate to the 28% rate AXA will apply the default rate of 28% for clients who do not provide their IRD number or elect another rate. You should review your PIR annually to ensure it is the appropriate rate in your circumstances. If you need further help deciding which rate to use please refer to www.ird.govt.nz.
If you would like to change your PIR rate please complete the following: