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, your tax certificate will include a table which outlines the details you’ll need to declare in your tax return.
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 2023 to 31 March 2024.
It highlights the most important information that’s on your tax certificate and explains how tax was calculated.
1. Your PIR
The PIR we had for you as at the end of the tax certificate period (31 March 2024 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) after expenses
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. Gross 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. Tax paid on transactions during the year
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 (31 March 2024 in this example) and it will show in your next transaction statement following the reporting period.
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 rate, any excess tax you paid will be applied by Inland Revenue to reduce any other income tax liability you may have for the tax year, and any remaining amount will be refunded to you.
- If the PIR we held for you was lower than your correct PIR you will be required to pay any tax shortfall as part of the income tax year-end process. 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.