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Taxing KiwiSaver income

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What
Your tax obligations on profits your KiwiSaver investments earn.
Who
Anyone making profit off their KiwiSaver contributions.
Rate
Dependent on the kind of KiwiSaver scheme you are enrolled in

Your KiwiSaver scheme invests your contributions so they earn money for you. You pay tax on the money your investment earns.

Withdrawals from your KiwiSaver scheme are tax-free.

To use the right tax rate you need to know what kind of KiwiSaver scheme you're in. These can be either:

  • widely-held superannuation schemes
  • portfolio investment entities (PIEs).

Your provider's product disclosure statement tells you which type of scheme you're in. Your My KiwiSaver account has the name and contact details of your provider.

If your KiwiSaver scheme is a widely-held superannuation fund, your investment earnings are taxed at 28%.

Portfolio investment entity KiwiSaver schemes

All the KiwiSaver default schemes are portfolio investment entities (PIEs).

A PIE invests in different types of funds. Your scheme provider taxes your investment earnings using the prescribed investor rate (PIR) you choose.

Prescribed investor rates

A prescribed investor rate is a tax rate. It is based on your total taxable income in the last two income years (1 April to 31 March), for example income from salary, wages and any other income.

Work out your PIR rate

You will need to give your provider the prescribed investor rate that applies to your situation. Your provider will ask you to check every year that you’re on the right PIR. Because your PIR is based on your income in the last 2 years, check your PIR rate if your financial situation changes in the future.

Using prescribed investor rates