Yovich & Co. KiwiSaver Market Update - 13 June 2019
Jun 13, 2019 | Commentary KiwiSaver
Tax issues related to KiwiSaver have been in the spotlight lately, regarding KiwiSaver members being over/undercharged investment tax through their prescribed investor rate (PIR). PIR is a tax that is applied to all investment savings, including KiwiSaver. Unlike income tax, which is refundable, PIR tax is non-refundable. Overpayment is due to an incorrect PIR being submitted when signing up to a KiwiSaver provider or a change in your personal income. This means members with a higher PIR than it should be are being taxed too high and not only paying too much but also losing out on investment returns that could be gained from the overpayment amount.
The IRD has implemented a new computer system that allows the IRD to now bill KiwiSaver members if they have provided a PIR that is lower than it should be. KiwiSaver members in this situation will receive a nasty surprise as they have to fund this payment from their income, not through their KiwiSaver balance.
A benefit of having your KiwiSaver through Yovich & Co is that you get to talk to an Adviser free of charge. We know your current PIR, so if you have any uncertainty regarding your KiwiSaver PIR, or any other issues, please contact me via the details below.
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KiwiSaver Tax PIR IRD