Is your PIE tax rate too high - going forward you can get a refund
A subtle change to PIE tax rules was delivered behind the scenes, which benefits investors. If you get your PIE tax rate wrong and overpay your PIE tax, you will get a tax refund going forward.
Historically - since PIR rates (Prescribed Investor Rates) and PIE's (Portfolio Investment Entities) were launched in 2007 - if you under-stated your PIE tax rate you owed the IRD money, but there were no refunds if your PIE Tax rate was over-stated. For the tax year ending 31 March 2019 approximately 1.5 million people used the wrong tax rate (however, anecdotally it appears that this could be because IRD was only looking at 12 months and not 24 months data).
Due to the wonders of technology and the new IRD system these issues have been resolved and from now on, if you overpay your PIE tax, you will receive a refund.
However, we recommend that you aim to get your PIR rate as accurate as possible to save yourselves hassle.
The following table outlines how to work out the PIR to be applied to PIE income:
Is your PIE tax rate too high - going forward you can get a refund
A subtle change to PIE tax rules was delivered behind the scenes, which benefits investors. If you get your PIE tax rate wrong and overpay your PIE tax, you will get a tax refund going forward.
Historically - since PIR rates (Prescribed Investor Rates) and PIE's (Portfolio Investment Entities) were launched in 2007 - if you under-stated your PIE tax rate you owed the IRD money, but there were no refunds if your PIE Tax rate was over-stated. For the tax year ending 31 March 2019 approximately 1.5 million people used the wrong tax rate (however, anecdotally it appears that this could be because IRD was only looking at 12 months and not 24 months data).
Due to the wonders of technology and the new IRD system. BLAH BLAH BLAH BLAH
The following table outlines how to work out the PIR to be applied to PIE income:
