Your tax rate

MFL operates as a Portfolio Investment Entity (PIE), which means the taxable income is allocated to members based on the number of units they hold. Your Prescribed Investor Rate (PIR) determines the amount of tax payable on your behalf.

Taxes on your investment are paid by cancelling units from your account equal to the value of the tax liability.

In some cases, MFL may receive tax refunds. When this occurs, units will be added to your account reflecting your share of the refund.

It is your responsibility to ensure your PIR is accurate. If your PIR is set too low, you may need to pay any tax shortfall during the income tax year-end process. If your PIR is set too high, any excess tax withheld will first reduce your income tax liability for the year, with any remaining amount refunded to you.

If you are not sure about your tax rate, you can work it out using a PIR calculator available at www.mflmutual.co.nz or visit the Inland Revenue website. Alternatively, please refer to the PIR table below:

*‘previous two income years’ refers to the two years prior to the tax year that the PIR is being applied to. An income year is generally the period from 1 April to 31 March of the following year. However, an income year can start and end on alternative dates if Inland Revenue consents. The tax year is always the period from 1 April to 31 March of the following year.

To update your PIR and also advise us of your IRD number (if we don’t have it on record), you can do so online by logging in to your account at www.mflmutual.co.nz and going to the ‘Personal Details’ page, or by calling the Helpline on 0800 207 207.