Investment guide

PIE Income & Tax: What You Should Know

Your retirement savings and other investments are likely held in a Portfolio Investment Entity (PIE), so it’s important that you understand what a PIE is, and the tax impacts that holding investments in a PIE can have.

What is a PIE?

A PIE is an entity that invests on behalf of investors that has elected into the PIE rules for income tax purposes. It’s a type of investment structure where your money is pooled with other investors and invested by the fund manager on behalf of these investors.

The most common form of PIEs in New Zealand are managed funds and KiwiSaver (where providers tend to use managed funds to make different types of investments on behalf of their members). AMP Managed Funds, AMP KiwiSaver Scheme, AMP Investment Trust, and New Zealand Retirement Trust (NZRT) are examples of a PIE.

The PIE rules allow the relevant managed fund to pay an amount of tax on each investor’s share of the fund’s investment income using the investor’s prescribed investor rate.

What is a Prescribed Investor Rate (PIR)?

The tax rate applied to your PIE-attributed taxable income earned from your investment in a multi-rate PIE is known as the PIR. This is determined by two factors: your taxable income (for example, salary and wages) and your PIE-attributed income, (being your share of income generated by, for example, KiwiSaver, NZRT, or AMP Managed Funds).

For investments in multi-rate PIEs (MRPs), there are currently three PIRs applicable to individuals: 10.5%, 17.5% and 28%, and the rate that applies to you will depend on your income level. It’s important that you check that your PIR is correct before 31 March every year, as after this date your tax will be paid on the basis of your then current PIR.

When you invest in a MRP like the AMP KiwiSaver Scheme, you will need to supply your IRD number and PIR. If AMP does not have a record of your PIR, we are required to use the default PIR of 28% (the rate that applies to the highest earners and non-residents).

Investments in PIEs can also be made by partnerships and trusts. If the investment is made with a MRP, each entity is able to choose their own PIR.

How do I know what my PIR is?

As mentioned above, there are only three PIR  for individuals, and it’s relatively simple to work out yours – head to our PIR guide to learn more about what it is and how it works. You can check the PIR that AMP has listed for you either online or on your statement.

If you believe that the PIR AMP has listed for you is incorrect, there are three simple ways to update it:

  • Through MyAMP: Log into MyAMP, click My Details > Tax Details, update your PIR and click 'Save Changes’.
  • Fill in a form: Download this form, then send it and any supporting documents to kiwisaver@amp.co.nz.
  • Give us a call: Update your PIR by giving us a call on 0800 267 005, Mon-Fri, 9am-5pm.

When is PIE tax collected?

PIE tax is collected from you at either the end of each tax year (i.e. 31 March), at the time of full withdrawal or when you transfer between a Workplace Savings plan and My Super, based on the year-to-date accrual.

PIE tax may also be collected during the year if there is a risk you will have an insufficient remaining balance to pay your year-to-date PIE tax accrual. AMP will test this risk every month, as well as when you make withdrawals or update your PIR. 

How do I calculate PIE tax payable or rebate?

You won’t have to worry about calculating your PIE tax, as AMP calculates it for you based on your daily PIE taxable income. Your PIE tax payable or rebate is the sum of each day’s PIE tax or rebate calculated over a tax year.

What is the difference between my personal tax rate and my PIR?

Your personal tax rate and your PIR are two very different things:

Personal tax rate: The rate at which your personal, non-PIE income, such as your salary and wages, is taxed. Head to Inland Revenue to learn more about income tax rates for New Zealand residents.

PIR: The rate at which your PIE taxable income and losses are taxed, including money made or lost through KiwiSaver. Which of the three rates apply if you are an individual (10.5%, 17.5%, 28%) will depend on your circumstances.


Do I have to do anything with my PIE tax certificate or statement?

For most people, your PIE tax statement will be for information purposes only and requires no action on your end. If your correct information has been provided to us, IRD should pre-populate your MyIR account with the data from the PIE tax statements they receive from us.

IRD may determine that the PIR that they have calculated is different from the PIR provided to AMP, and they will note a PIE tax payable or a PIE tax credit (refund due) in your MyIR account. If this is the case, and you are unsure about what to do you can give us a call or otherwise seek tax advice from a specialist.

What is taxable investment income (or loss)?

Taxable investment income is the taxable portion of your investment earnings or losses. You may have taxable investment income even if your investment earnings have decreased.

What is investment earnings (or loss)?

Investment earnings are the movement in the unit price of your investment, written as a dollar value. If the unit price of an investment has decreased during the year, your investment earnings will be expressed as a negative dollar amount. If the unit price has increased, investment earnings will be expressed as a positive dollar amount.

What are tax deductible expenses and taxable rebates?

All fees charged for ongoing management and administration of your investment are treated as tax deductible expenses. AMP collects your share of these fees by cancelling units in your fund. We then deduct these fees from your PIE taxable income to calculate your PIE tax liability or credit. Tax deductible expenses are detailed in your PIE tax statement as a positive amount.

If you have been charged a one-off Adviser service fee as agreed with your Adviser (and as shown in your annual statement), it has not been treated as a tax deductible expense as it is not charged for the ongoing management and administration of your investment. You may be able to claim a tax deduction for this fee in your tax return, depending on the nature of the services provided. You should obtain your own tax advice to determine whether such a fee is deductible to you.

Taxable rebates are included in your PIE tax statement if additional units are issued to you (e.g. to pass on a fee discount). If you do receive a fee rebate in this way, the rebate is treated as taxable income because we have claimed a fee deduction within the unit price.

Why doesn’t my taxable investment income or loss on my PIE tax statement match my investment earnings or loss, as shown on my annual statement?

The tax rules that apply to your fund’s underlying investments do not always match the accounting treatments. PIE tax is calculated on the taxable portion of earnings or losses from your investment, not on any increase or decrease in its value. Even if the value of your investment has gone down, it may still have earned taxable income over the period that will be subject to PIE tax.

Your PIE tax statement shows the portion of earnings that is taxed as PIE taxable income or loss. Your annual statement will show your total investment earnings, whether these are taxed or not.

Are my funds taxed twice, since I see tax coming out on my payslip?

No, you only pay PIE tax on income generated through your KiwiSaver, AMP Managed Funds, AIT, or NZRT investments. Your contribution is calculated and deducted from your gross pay.

Why is the amount of my employer’s contribution different from mine even when we both contribute at the same rate?

Member contributions are calculated as a percentage of your gross salary and wages and are deducted from your after-tax pay. This contribution amount is deposited into your relevant superannuation scheme e.g. KiwiSaver, or NZRT.

Employer contributions are also based on a percentage of your gross pay but have Employer Superannuation Contribution Tax deducted before they are paid into your relevant superannuation scheme.

What are tax credits claimed?

This represents credits for tax paid on underlying investments. For example, imputation credits attached to dividends received.

What are ‘Units’ on my PIE tax statement?

As a member of the NZRT, AMP Managed Funds, AIT, or AMP KiwiSaver Scheme, the money you save is pooled together with other people’s savings. Your money buys ‘units’ which represent your share of the fund(s) you are invested in. The value of your units is calculated on a daily basis and changes as the market value of the assets in the fund rise and fall.

Ready to start investing?

AMP Managed Funds

Looking at ways to get your money working for you? AMP managed funds are a smart, simple and low-cost way to invest. With conservative, balanced or growth fund options, you are in control of how your money is invested. There’s no minimum investment requirement, and by starting today you can begin working towards tomorrow’s goals.

Grow your money your way

AMP KiwiSaver Scheme

If you have a KiwiSaver account, you already have money in a multi-rate PIE, as that is exactly what most KiwiSaver schemes are. The AMP KiwiSaver Scheme is designed to deliver healthy returns through our sustainable investment philosophy and can ultimately help you to buy your first home and live a more comfortable retirement.

Why Choose AMP KiwiSaver Scheme?

UK Pension Transfers (QROPS)

There are a wealth of reasons to transfer your retirement savings from overseas – easier access to your money, greater visibility and control over your retirement savings. If you have a UK pension our expert team can help transfer your funds to NZ.

Consolidate your savings

The information included in this statement is of a general nature and is not a substitute for tax advice. If you require tax advice, we recommend you contact your tax specialist or Inland Revenue.