Whai Rawa and Tax
Update your Whai Rawa tax information by 25 March 2010 to ensure you are paying the right amount of tax on any Whai Rawa payments you recieve at end of March 2010.
Please note: If you do not supply this information you will taxed at the default (maximum rates).
Follow the links below to make sure you are providing the correct information. Once you have calculated your rates update them by:
- Logging into the secure website and going to the Whai Rawa section
- Emailing us with your updated rates; or
- Phoning us on 0800 942 472 or fax 03 3638905.
Remember if you are not sure how to work out your rates we can help.
Work out your tax rates here
- NZ Residents need to provide an IRD number, a PIR rate and an RSCT rate
- Non NZ tax residents need to supply only an NZ IRD number
Not sure whether you are an NZ resident for tax purposes?
- Tax on Investment Returns into your Whai Rawa Account
- Retirement Scheme Contribution Tax (RSCT)
- Calculating your RSCT rate
- IRD Numbers
- Non NZ Tax Residents
- Tax on investment returns (PIE and PIR)
- Work out your Prescribed Investor Rate
- March 2008 Te Rūnanga Annual Distribution and Matched Savings
Frequently asked Tax Questions
- What is a Māori Authority?
- What is a Māori Authority Tax Credit?
- What do I need to do now to make sure Whai Rawa contributions (Distributions and Matched Savings) from Te Rūnanga are correctly taxed?
- What's the difference between PIR's and RSCT rates?
- What is a PIE (Portfolio Investment Entity)?
- What is PIR (Prescribed Investor Rate)?
- How do I work out my PIR?
- What happens if I give you the wrong PIR or RSCT rate or if I don't give my IRD number?
- What if I am not a NZ Tax Resident?
- What happens if my PIR or RSCT rate changes?
- How do I find out my IRD number?
Tax on Earnings
Whai Rawa is invested in a Portfolio Investment Entity (PIE), therefore members are taxed on investment returns at their Prescribed Investor Rate (PIR), and is either 19.5% or 30%.
Retirement Scheme Contribution Tax (RSCT)
Whai Rawa operates under the Retirement Scheme Contribution Tax (RSCT) rules. This means Te Rūnanga will deduct the tax payable on contributions it makes into Whai Rawa (such as distributions and matched savings) at the members' RSCT rate, provided members supply that rate and their IRD number.
The RSCT is a final tax meaning members will not be required to pay any further tax on their contributions from Te Rūnanga and will not have to file tax returns in relation to these contributions (MATC).
Please note:
- Te Rūnanga is able to offset by applying Māori Authority Tax Credits (at up to 19.5%) to any distribution and matched savings payment.
- RSCT is a 'final' tax. This means you will not be required to file a tax return in relation to Te Rūnanga contributions such as distributions and matched savings.
- If you do not supply us with both your IRD number and RSCT rate your distribution and matched savings will be taxed at 39% (subject to offsetting of Māori Authority Tax Credits).
- If your income changes in the future you will need to advise us of those changes if it affects your RSCT rate (or PIR).
For more information about RSCT go here.
Calculate your Retirement Scheme Contribution Tax (RSCT) rate for the year ending 31 March 2010
The flow chart below shows how to calculate your Retirement Scheme Contribution Tax (RSCT) rate:
IRD Numbers
Any person, individual or business who is required to pay tax in New Zealand will be allocated an IRD number when they apply to Inland Revenue. You will need an IRD number before you start a job, or if you want to open a bank account.
To ensure that Whai Rawa members pay the correct amount of tax we require all members to supply us with their IRD number. Please note this includes child members and overseas residents.
Non NZ Tax Residents
Non Resident Members only need to supply an IRD number to have the correct default rates applied*.
We have set up a process to assist non NZ tax resident to obtain IRD numbers so they can be taxed at the correct rate as outlined in the forms below forms below:
- Procedure for non-resident adult members of Whai Rawa applying for IRD numbers from overseas:
- Procedure for non-resident child members of Whai Rawa applying for IRD numbers from overseas
As well as supplying the ID as outlined in these forms you will need to complete an IR595 and, if you are an account holder for a Whai Rawa child member, you will need to complete an IR595D Statutory Declaration.
PLEASE REMEMBER TO RETURN THE COMPLETED FORMS TO WHAI RAWA AT PO BOX 13046, CHRISTCHURCH or email to whairawa@ngaitahu.iwi.nz
* Whai Rawa will apply the following rates to those who declare themselves to be non resident members:
- PIR 30%
- RSCT rate 19.5% if IRD number supplied, otherwise 39%
Tax on investment returns (PIE and PIR)
Whai Rawa member individual accounts are pooled and invested into a Wholesale Cash Fund. This pooled Whai Rawa investment earns a return. Whai Rawa is a Portfolio Investment Entity (PIE) and therefore any returns are taxed within the rules relating to PIEs.
The rules relating to PIEs states that investors are able to declare their Prescribed Investor Rate (PIR), which is the rate used to calculate the tax for individuals.
Members can declare either a PIR of 19.5% or 30%.
Calculate your Prescribed Investor Rate (PIR) for the year ending 31 March 2010
There are two rates: 19.5% and 30% Use the chart below to identify the correct rate for your circumstances.
Frequently asked Questions
What is a Māori Authority?
Māori authorities were created to act as trustees in order to administer communally owned Māori property on behalf of individual members.
Today, a Māori authority must manage or administer assets held in common ownership. These entities may be trustees of trusts or companies. Te Rūnanga o Ngāi Tahu is registered as a Māori Authority under these rules.
What is a Māori Authority Tax Credit?
A Māori Authority Credit is similar to a company imputation credit. It is income tax paid by the Māori authority that may be passed on to a member by attaching it to a distribution, for the benefit of the member.
These credits are added to the distribution to calculate gross income to the member. The member receiving the distribution may then claim the Māori authority credits against their income tax liability.
This system helps stop the double taxation of a Māori authority distribution by effectively taxing the distribution once - in the Māori authority's income tax return.
What do I need to do now to make sure Whai Rawa contributions from Te Rūnanga are correctly taxed?
You need to supply us with both your IRD number and your RSCT rate. If you are a non NZ Tax resident you only need to supply your IRD number.
What's the difference between PIR's and RSCT rates?
The table below shows the difference between RSCT rates and prescribed investor rates (PIR). Please note that both of these rates apply to your Whai Rawa account.
| RSCT | PIE | |
| Total annual taxable income | RSCT Rate | Prescribed Investor Rate |
| Up to $38,000 | 19.5% | 19.5% |
| $38,001 to $60,000* | 33% | 30% |
| $60,001 and over** | 39% | 30% |
* Excluding all PIE investment income ** Including all PIE investment income |
Therefore, members on a 19.5% PIR will pay 19.5% tax on any taxable investment income earned within a PIE (For example your Whai Rawa fund is pooled and invested into a PIE compliant Wholesale Cash Fund. This fund earns a return. You pay tax, based upon your declared PIR, on the return you get on your individual Whai Rawa account). Investors with a 33% or 39% RSCT rate will have a PIR of 30%, and will pay 30% tax on taxable investment income earned within a PIE. Since 1 April 2008, investors with a RSCT rate of 33% or 39% will have a PIR of 30%.
Any contributions received from Te Rūnanga (from income) will have tax deducted under the RSCT rules at your RSCT rate.
Some or all of this tax may be offset by Māori Authority Tax Credits (MATCs) applied by Te Rūnanga. We will advise you each year what MATCís have been applied.
What is a PIE (Portfolio Investment Entity)?
These are collective investment vehicles which have adopted a new tax structure from 1 October 2007. This new structure allows investors taxable income from a PIE to be taxed at their prescribed investor rate to a maximum of 30%.
What is PIR (Prescribed Investor Rate)?
This is the rate that tax will be paid for you within a PIE. This rate reflects your income from salary, wages and any additional income and is currently either 19.5% or 30%.
How do I work out my PIR?
Your Prescribed Investor Rate will be either 19.5% or 30%. To qualify for the 19.5% prescribed investor rate, you must be a New Zealand tax resident and, in either of the two income years immediately before the tax year in question, your:
- Taxable income must be $38,000 or less; and
- Combined taxable income and Portfolio Investment Entity income must total $60,000 or less.
For all other individuals and non-residents your prescribed investor rate will be 30%.
What happens if I give you the wrong PIR or RSCT rate or if I don't give my IRD number?
If you do not advise us of a change in your prescribed investor rate or RSCT rate or provide us with the wrong rate you may have an obligation to file a tax return and pay further tax and penalties.
If you don't provide your IRD number you will be taxed at the higher rate of 30% on your PIE earnings and 39% on your Te Rūnanga contributions.
What if I am not a NZ Tax Resident?
Non Resident Members should not elect a PIR and RSCT rate, but should supply an IRD number. Whai Rawa will apply the following rates to those who declare themselves to be non resident members:
- PIR 30%
- RSCT rate 19.5% if IRD number supplied, otherwise 39%
We have set up a process to assist non NZ tax resident to obtain IRD numbers so they can be taxed at the correct rate. Please download these forms:
- Procedure for non-resident adult members of Whai Rawa applying for IRD numbers from overseas: IRD Number Adult
- Procedure for non-resident child members of Whai Rawa applying for IRD numbers from overseas: IRD Number Child
Follow the instructions to obtain an IRD number for yourself and anyone you are an account holder for. As outlined in the forms you will need to complete an IR595 and if you are an account holder for a Whai Rawa child member you will need to complete an IR595D Statutory Declaration.
PLEASE REMEMBER TO RETURN THE COMPLETED FORMS TO WHAI RAWA AT PO BOX 13-046, CHRISTCHURCH.
What happens if my PIR or RSCT rate changes?
It is very important that you tell us your correct Prescribed Investor Rate and RSCT rate and also tell us if your rates change.
If you do not advise us of a change in your rates or if you provide us with the wrong rates you may have an obligation to file a tax return and pay further tax and penalties.
How do I find out my IRD number?
If you don't know your IRD number, the easiest way to find it is to ask your employer for it or access it through the IRD on 0800 377 774 or www.ird.govt.nz