PIE Income & Tax: What You Should Know

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.

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.

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.

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.

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.

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.

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.

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

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.