Cap your tax at 30% with a MARAC PIE investment
MARAC PIE investments are ideal for investors currently paying 33% or 38% resident withholding tax (RWT) as it gives you the ability to increase your net investment returns by taking advantage of the capped 30% PIE tax rate*.
Two MARAC PIE investments to choose from
We have two MARAC PIE investment options for you can choose from.
MARAC Term Deposit PIE
This is a fixed rate, fixed 12 month term investment. The MARAC Term Deposit PIE gives you the option of having your income either direct credited or compounded quarterly.
MARAC Call PIE
The MARAC Call PIE is a floating rate investment that gives you easy access to your capital while earning a competitive return. Income is earned daily and compounded monthly.
How a PIE investment increases your return
Let's use the MARAC Term Deposit PIE for this example - it works in a very similar way to any 12 month term deposit . MARAC is currently offering 6.75% p.a. for 12 months with income direct credited or compounded quarterly. For an investor currently paying RWT at 38%, investing in a MARAC Term Deposit PIE means paying 21% less tax which is equivalent to earning 7.62% p.a. in a non-PIE term deposit.
Click here to go to our PIE investment returns calculator. Our PIE investment returns calculator will help you work out what your return would be on a PIE investment, and also compare the return on a PIE investment with a non-PIE investment.
What is a PIE investment?
In October 2007, new tax legislation came into effect that allowed the creation of a new type of investment vehicle called a Portfolio Investment Entity (PIE). The PIE tax rules mean the tax payable on investment income earned in a PIE is capped at 30%. For more information on PIEs, click here to go to Inland Revenue’s website.
How to work out your PIR (Prescribed Investor Rate)
There are three PIRs, 0%, 19.5% and 30%. Click here to go to Inland Revenue’s website to work out what your PIR is. We also recommend you seek advice from a qualified professional.
What you need to know
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MARAC Term Deposit PIE |
MARAC Call PIE |
| Who can invest? |
- Individual
- Trust
- Business
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- Individual
- Trust
- Business
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| Minimum investment |
$1,000 |
$1,000 |
| Term |
12 months |
Call |
| Fees |
No fees |
No fees |
| Income |
Calculated daily and paid quarterly on the last business days of March, June, September and December each year. You can choose to have your income either direct credit to your nominated bank account or compounded. |
Calculated daily and compounded monthly. |
| Access to investment |
At the end of the term. |
Freephone 0800 26 27 22. |
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| Units |
1 unit equals $1. |
1 unit equals $1. |
*PIE funds provide some investors with benefits over holding assets (including investments) directly. This is because PIE funds pay tax on behalf of investors at their Prescribed Investor Rate (PIR) with the highest PIR capped at 30% with no further tax payable.
The MARAC Term Deposit PIE and MARAC Call PIE are invested in MARAC Finance Limited secured debenture stock, which is rated BB+ (negative watch) ** by Standard & Poor's. MARAC Finance Limited secured debenture is a first ranking investment, subject to prior permitted charges (currently none) and claims given priority by legislation. The MARAC PIE Fund is not rated by Standard & Poor's.
** Standard & Poor's ratings are statements of opinion, not statements of fact or recommendations to buy, hold or sell any securities. Ratings may be changed, withdrawn or suspended at any time. For the latest ratings information please visit www.standardandpoors.com.
For a copy of the MARAC PIE Fund Investment Statement, call 0800 26 27 22. Minimum investment $1,000. Rates are subject to change.