A multi-rate PIE (MRP) must be a company, superannuation fund or group investment fund that meets the general eligibility requirements and is not already a listed, benefit fund or life fund PIE.
MRPs need to attribute income, losses and tax credits to investors.
They pay tax based on the prescribed investor rates of their investors.
Filing methods for MRPs
- Work out and pay tax quarterly.
- File periodic returns quarterly and may zero-rate investors who exit the MRP during the quarter.
- Work out income and tax credits daily.
- File monthly periodic returns for investors who exit the MRP during the first 11 months of the year.
- File a periodic return for the remainder of investors after 31 March.
- Work out tax based on investors' prescribed investor rates and pay provisional tax.
- File income tax returns as usual.
Responsibilities of MRPs
Once an entity has registered as an MRP and elected a calculation method, it needs to notify us about any changes in method before the start of the income year.
MRPs also file an annual reconciliation and investor certificates after the end of the income year.
Foreign investment PIEs are MRPs
Two subsets of MRPs are known as the foreign investment zero-rate PIE and the foreign investment variable-rate PIE.
The general MRP rules relate to these two subset PIEs. However, these PIEs cannot elect to pay tax using the provisional tax option.