I come from a country with a plethora of types of taxes for investments. Different investments have different types of taxes and/or different rates.

I would like to know if it's the same in New Zealand, I have a savings account investing in I-don't-know-what, but I'm thinking about changing for a term investment that has a better interest rate, so I'd like to know if I'd be paying the same tax rate.

1 Answer 1


The simple answer is probably. Your bank will deduct the relevant tax before paying you the interest, based on your personal tax situation. The only time they will deduct a different tax rate is for a PIE (Portfolio Investment Entity) type account. For example, here's a page from Kiwibank that explains PIEs from a consumer perspective in simple terms: https://www.kiwibank.co.nz/personal-banking/investments/pie-funds/

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