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Inland Revenue

Tax Policy

Portfolio investment entities (PIES)

Issue: Top rate of 30%

Submission

(4 – University of Auckland – Retirement Policy and Research Centre)

PIE income should be subject to the same marginal tax rates as ordinary income. In particular, PIE tax should not be capped at 30%.

Comment

This is outside the ambit of the proposals in the bill.

Recommendation

That the submission be noted.


Issue: PIE income should be included for social policy purposes

Submission

(4 – University of Auckland – Retirement Policy and Research Centre)

PIE income should be taken into account for the purposes of state entitlements and obligations. This should also apply to income that is subject to fringe benefit tax, employer scheme contribution tax, and fund withdrawal tax.

Comment

This is outside the ambit of the proposals in the bill.

Recommendation

That the submission be noted.


Issue: PIE tax rate for non-residents

Submission

(10 – KPMG)

There should be a 0% PIE tax rate for foreign-sourced income of non-resident investors.

Comment

This matter is outside the ambit of the bill. Note that it is currently being considered by the Government as one of the issues resulting from the Prime Minister’s Job Summit.

Recommendation

That the submission be noted.