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Te āhei atu ki ngā hinonga kohinga haumi Eligibility to be a portfolio investment entity

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Entities must meet certain criteria to become a portfolio investment entity (PIE). There may be exceptions and variance to these requirements. Detailed requirements are in our PIE guide.

Requirements for an MRP

  • At least 90% of the entity’s income must be passive.
  • Investor interests must give the same rights to entity income.
  • The PIE must adjust members’ accounts to reflect their notified or prescribed investor rate.

Requirements for a listed PIE

  • At least 90% of the entity’s income must be passive.
  • Be or about to be listed on a recognised stock exchange in New Zealand.
  • Have only one investment class.
  • Investor interests must give the same rights to entity income.
  • Full imputation credit.

Requirements for a benefit fund and life fund PIE

  • At least 90% of the entity’s income must be passive.

Requirements for a land PIE

  • At least 90% of the entity’s income must be passive.
  • Hold more than 50% of its investments in land or land holding companies.
  • Land losses can only be offset against income from that same land class.

General requirements for all PIEs

  • Entities must be New Zealand residents.
  • Entities must be a company, trust or superannuation scheme.
  • Entities cannot have ceased to be a PIE in the last 5 years.
  • PIEs other than Listed must have investor classes which include at least 20 investors or have a specified investor such as another PIE.
  • An investor generally cannot hold more than 20% of investor interests in a class.
  • PIEs generally should not hold more than 20% of voting or value interests in a company or investor class.

At least 90% of the entity’s asset value must be:

  • an interest in land
  • a financial arrangement
  • an excepted financial arrangement
  • a right or option concerning these investment types.

At least 90% of entity income must be derived from property under the requirements above or consist of:

  • dividends
  • replacement payments
  • income treated under the financial arrangement rules as derived by the entity
  • income under a lease of land
  • proceeds from the disposal of property noted above
  • foreign investment fund income
  • income attributed from another PIE
  • distributions from superannuation funds
  • management fee rebates.