Unit trusts, superannuation funds, and other managed investments
Unit trusts are deemed to be companies for income tax purposes and taxed as above. Widely-held superannuation funds are generally subject to tax at 28% on their net income. Employer contributions to superannuation schemes are subject (with certain exceptions) to a superannuation contribution withholding tax.
Some New Zealand resident widely-held unit trusts, superannuation funds, and other investment vehicles are able to elect into the portfolio investment entity (PIE) tax regime. PIE status has certain tax benefits including an ability for the PIE’s income to be taxed by reference to investors’ marginal tax rates (with a 28% cap) and an exemption from tax on New Zealand and some Australian share trading revenues. Further, for PIEs meeting certain criteria, New Zealand tax on foreign-sourced income attributable to non-resident investors is exempt, while tax on certain New Zealand-sourced income is imposed at concessionary rates. A PIE otherwise pays tax at 28% on all income, including foreign-sourced income, attributable to non-resident investors in the PIE.