A portfolio investment entity (PIE) is an entity which invests the contributions from its investors in different types of passive investment. A PIE may have tax advantages for you because it has special tax rules.

You could benefit from investing in a PIE because you’ll pay tax on any investment income based on your prescribed investor rate (PIR), instead of your personal income tax rate.

A PIE that invests in New Zealand shares and certain Australian shares won’t be taxed on any capital gains (or losses) from those investments.