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Whai Rawa and Tax
Calculate your tax rates » Remember if you are not sure how to work out your rates we can help.
Once you have calculated your tax rates you can update them by:
- Logging into the secure website and going to the Whai Rawa section
- Contacting us
Providing the right tax information is important for you and all Whai Rawa members including child members, otherwise you could end up having too much tax deducted from your Whai Rawa funds. Providing the right tax information also means you don't have to worry about including information about your Whai Rawa income in your NZ tax return.
Tax on Ngāi Tahu Contributions
Matched savings and annual distribution payments from Te Rūnanga o Ngāi Tahu are taxed before they are paid to your Whai Rawa account (partially offset by Maori Authority Tax Credits). This tax deduction is called Retirement Scheme Contribution Tax (RSCT).
Tax on Earnings
Money in your Whai Rawa account earns returns which are calculated daily, added to your account quarterly and taxed each year at 31 March or when you make a withdrawal or transfer. This tax deduction is called Portfolio Investment Entity (PIE) tax.
Information You Need to Provide
- NZ Residents need to provide an IRD number; a PIR rate; and an RSCT rate
- Non NZ tax residents only need to supply only an NZ IRD number - find out more.
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.
Please note:
- Te Rūnanga is able to offset by applying Māori Authority Tax Credits (currently at 10.5%) 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 (NZ Residents only) your distribution and matched savings will be taxed at 33% (subject to offsetting of Māori Authority Tax Credits).
- Non residents are taxed at 10.5% provided they supply a NZ IRD number. If no NZ IRD number is supplied non-residents will be taxed at 33%.
- If your income changes in the future you will need to advise us of those changes if it affects your RSCT rate (or your PIR).
Tax on Investment Returns (PIE and PIR)
Whai Rawa member individual accounts are pooled and invested into a pooled fund currently the Mercer Defensive 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.
NZ tax resident members can declare either a PIR of 10.5%, 17.5% or 28%.
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.
Not sure whether you are an NZ resident for tax purposes?
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 28%
- RSCT rate 10.5% if IRD number supplied, otherwise 33%
Frequently asked Tax Questions
- 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 happens if I give you the wrong PIR or RSCT rate or if I don't give my IRD number?
- What happens if my PIR or RSCT rate changes?
- How do I find out my IRD number?
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 (Distributions and Matched Savings) 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 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 are a NZ tax resident and you don't provide your IRD number you will be taxed at the higher rate of 28% on your PIE earnings and 33% on your Te Rūnanga contributions.
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