PIE Income Funds Tax-Efficient Fixed Income
Portfolio Investment Entities (PIE) offer fixed income investing with potentially lower tax rates and professional management. Perfect for higher-income earners.
What are PIE Funds?
Portfolio Investment Entities (PIE) are a special tax structure for investment funds in New Zealand. PIE income funds invest in bonds, term deposits, and other fixed income securities.
The key advantage is taxation. PIE funds are taxed at your Prescribed Investor Rate (PIR), which is often lower than your marginal tax rate, especially for higher-income earners.
PIE income funds offer professional management, diversification across multiple bonds and issuers, and daily liquidity – features you can't get with direct bond or term deposit investments.
PIE Fund Features
PIE vs Personal Tax Rates
See how much you could save with PIE tax rates
| Income Level | Personal Tax Rate | PIE Tax Rate | Tax Savings |
|---|---|---|---|
| Under $14,000 | 10.5% | 0% | 10.5% |
| $14,000 - $48,000 | 17.5% | 10.5% | 7% |
| $48,000 - $70,000 | 30% | 17.5% | 12.5% |
| Over $70,000 | 33-39% | 28% | 5-11% |
Ready to Explore PIE Income Funds?
Consider PIE funds if you're in a higher tax bracket or want professional fixed income management. Compare with other options to find your ideal investment mix.