Investment tax changes from 1 April
Investment tax changes from 1 April
The government is introducing new tax rates from 1 April 2010 for people who earn bank account interest or invest in a PIE (Portfolio Investment Entity). The new rates reflect last year’s changes to personal tax rates.
Here’s a quick summary of the changes:
Interest income
The new resident withholding tax (RWT) rates will be 12.5%, 21%, 33% and 38%, depending on your personal tax rate.
The current RWT rates are 19.5%, 33% and 39%.
PIE income
The new prescribed investor rates (PIRs) on portfolio investment entities (PIEs) will be 12.5%, 21% and 30%.
The current PIRs are 19.5% and 30%.
More information
Visit the Inland Revenue website for more detailed information on both of these changes.
If you want to change your RWT rate or PIR and know what your new rate should be, contact your financial institution or bank.
User comments More than Two Children Taxed More
Why would you want to tax people more with more children? Those children in bigger families will be trapped in poverty cycles. With a net decline in population when migrants are taken out of the equation I would have thought that the government should encourage reproduction.
Posted at 10:50 pm on September 03, 2010 Re: 2010 or 2011
This post refers to investment tax changes which came into effect on 1 April 2010. However in the May Budget, the government announced further changes to PIE rates which will take effect from 1 October 2010...
Posted at 09:33 am on May 31, 2010 Tax on savings
A tax free UK ISA is the answer
NZ citizens seem to get ripped off frequently
Posted at 01:12 pm on May 29, 2010 Taxing Interest
Interest should be taxfree. The initial investment was taxed when it was first earned! NZer's should be encouraged to save and invest, not spend.Tax should be doubled on cigarettes, alcohol and debt purchases. People with more than two children should be taxed more than those with less. Student loans should be written off if once qualified the person worked in that field and pays taxes whilst doing so. Every year worked in NZ after studying should reduce your debt. A doctor should not have to pay back a student loan if they work as a doctor for 7 years after studying in New Zealand. The government would be better to encourage certain professions than the penalise those that wish to invest here. I'm not investing in New Zealand if I'm going to be taxed on my interest, I'll send it to an overseas account rather- why would I?
Posted at 03:02 pm on May 01, 2010 
