What is a PIR?

You need to provide both your IRD number and your PIR when you invest in a PIE. Your PIR is the rate of tax you pay on the taxable returns (not all returns are taxable) on your investments in a PIE. Your KiwiSaver provider makes the appropriate tax payments on your behalf from your KiwiSaver account to Inland Revenue, according to your PIR.

This means that you don’t need to file a tax return for your KiwiSaver interests, unless you have been paying an incorrect rate.

There are three PIRs that apply to KiwiSaver members (rates valid from October 2010 and current as at March 2016):

  • 10.5%
  • 17.5%
  • and 28% 

The rate that applies to you will depend on your taxable income, plus the income or loss from any PIEs you are a member of, in each of the previous two income years.