Most of TOWER’s managed funds are now Portfolio Investment Entities (PIEs), which means many investors may now be paying less tax than before.
The real benefit of PIEs is that income from investments in PIEs is taxed at the investor’s own tax rate, known as the Prescribed Investor Rate (PIR).
There are four PIRs: 0%, 12.5%, 21% and 30%. Individuals will qualify for either 12.5%, 21% or 30% depending on their level of income. You need to work out your PIR using the calculator below and provide your PIR and IRD number to TOWER at the same time to ensure you are taxed at the correct rate and benefit from the savings.
For important notes, see comments below. For more detailed information on PIEs and the way they are taxed, please click here
NB: If you don’t provide your PIR and IRD numbers to TOWER at the same time, your PIR is automatically set at 30%
* Any new application for an investment cannot be loaded if you don't provide your PIR and IRD number
Where the investment is jointly held all parties must calculate their PIR separately and the highest is used to tax ALL income.
If you have a PIR of 0%, you are required to include any investment income in your trust's, estate's, company's or charity's tax return.