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Understanding your YouWealth tax certificate

If you’re a YouWealth investor, you’ll receive a tax certificate each tax year that outlines the amount of tax that has been paid on your taxable income, or tax refund that has been claimed on your loss.

If you’re no longer a YouWealth investor, your tax certificate covers the period during the year that you were a member.

How your tax has been calculated

Like many other investments, income from YouWealth is taxable. Each YouWealth fund is a Portfolio Investment Entity (PIE) which means we calculate and pay tax on your taxable income using your Prescribed Investor Rate (PIR).

There are four different PIRs available:

  • 0%
  • 10.5%
  • 17.5%
  • 28%.

If you are investing jointly with another person, the PIR will be the highest PIR of all the joint investors.

If you’re a zero-rated (0%) investor, you’ll need to include the income shown on your tax certificate in your tax return.

Work out your PIR

How your tax has been paid or claimed

If you had tax payable shown on your tax certificates, units would have been sold from your investment to pay the tax. If a refund was due, we requested this from Inland Revenue, and the refund was used to purchase new units for you. These transactions are shown on your tax certificate.

Understanding your tax certificate

Below is an example tax certificate for the period 1 April 2018 to 31 March 2019.

It highlights the most important information that’s on your tax certificate and explains how tax was calculated.

YouWealth Tax Certificate example 1

YouWealth Tax Certificate example 2

1. Your PIR

The PIR we had for you as at the end of the tax certificate period (31 March 2019 in this example). Your PIR is the tax rate at which any taxable income you earn on your investment will be taxed.

2. Taxable income / (loss)

This is the income (or loss) you have earned from your investment that is subject to tax. Administration and management fees can be deducted for tax purposes.

3. Tax payable / refundable

This is the amount of tax payable/refundable based on your PIR.

4. Total tax credits

Tax credits represent any tax that has already been deducted from or paid by the source of your taxable income (before it is received by the fund). These tax credits are used to reduce any tax you need to pay on the taxable income from your investment.

5. Less tax (paid) / refunded in the period

Tax paid or refunded on transactions during the year are triggered by transactions like withdrawals or switches between funds and the tax is satisfied (paid or refunded) at the time of the transaction.

6. Net tax payable/ (refundable)

This is the amount of tax that has been paid or refunded at the end of the period. This amount was deducted from or refunded to your investment after the end of the tax certificate period (April 2019 in this example) and it will show in your next transaction statement following the reporting period.

7. Multiple PIRs

This section will only be included in your tax certificate if you have had more than one PIR during the period. We’ve broken down the income and tax details for each PIR we had recorded for you.

8. Zero-rated investors

If you were a zero-rated investor, your tax certificate will include a table which outlines the details you’ll need to declare in your tax return.

What do I need to do next?

Your current PIR is shown on the right-hand side of your tax certificate. If the PIR we held for you during the year was correct, you don’t need to take any action. We have paid or claimed your tax on your behalf.

If your PIR is zero, then you’ll need to complete a tax return.

What if my PIR was incorrect?

If the PIR we held for you was incorrect, you may need to complete a tax return. Speak to your accountant or tax adviser if you’re unsure.

  • If the PIR we held for you was higher and tax was deducted at a higher PIR, then tax on your account is final and you don’t need to file a tax return. Unfortunately, this may mean you have paid too much tax, and under current tax rules, you cannot claim back this tax.
  • If the PIR we held for you was lower, you should complete and file a tax return with Inland Revenue and pay any tax payable. See the Inland Revenue website for information on how to do this.

How to tell us if your PIR has changed

If your PIR has changed, you'll need to let us know.

If you need tax advice you should speak to a tax adviser, who’ll be able to give you guidance in relation to your own specific circumstances.