Multi-rate PIE Fund
What Multi-rate PIE status means for your investment.
K2 Capital operates as a Multi-rate Portfolio Investment Entity (PIE). This page explains, in plain terms, how that structure changes the effective, after-tax return for both domestic and foreign investors.
For New Zealand tax residents
As a Multi-rate PIE, K2 Capital taxes your share of fund income at your own Prescribed Investor Rate (PIR), rather than a flat trustee or company rate. For many investors, this PIR is lower than their marginal personal tax rate, and PIE income is not required to be included in your annual income tax return; it is a final tax. If you do not notify K2 Capital of your PIR, the default rate of 28% applies.
You advise K2 Capital of your correct PIR when you invest. It is your responsibility to confirm your PIR is accurate with Inland Revenue.
PIR
After-tax return
Applies to
Frequently Asked Questions
What is a Multi-rate PIE?
A Multi-rate Portfolio Investment Entity is a tax structure under New Zealand law that allows income to be taxed at each investor's own rate, rather than one flat rate for the whole fund.
Is PIE income taxed again in my tax return?
For most New Zealand resident individuals using the correct PIR, PIE income is a final tax and does not need to be included in your personal income tax return.
What happens if I use the wrong PIR?
Inland Revenue may adjust your tax position if an incorrect PIR is used. It is your responsibility to notify K2 Capital of your correct rate.
Does this apply to trusts and companies?
Eligibility and applicable rates can differ for trusts and companies. We recommend speaking with your tax adviser to confirm your position.
This page is general information only and does not constitute tax advice. K2 Capital Limited recommends all investors seek independent tax and financial advice specific to their circumstances.