PIE Tax (PIR)
The tax regime for KiwiSaver and managed funds — capped at 28%, often lighter than your income tax rate.
Portfolio Investment Entities — KiwiSaver funds and most NZ managed funds — are taxed under their own rules. You supply a Prescribed Investor Rate (10.5%, 17.5% or 28%) based on your recent income, and the fund pays tax at that rate on your share of its income.
The cap is the feature: PIE income maxes out at 28% even if your marginal tax rate is 33% or 39%. The trap is a stale PIR — earn more and forget to update it, and IRD now squares up the difference at year end.
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