At the end of each financial year, Flint automatically pays tax on the income you earn from an investment - we do this on your behalf. This managed fund income is commonly called a ‘distribution’.

In short, a distribution is profit or income made by a fund and paid to investors.

Please note: you don’t pay tax on things like withdrawing money from your Wallet into your bank account.

Tax is applied to investment income received by the fund itself - this is regardless of whether you’re personally making a gain or loss on your investments.

With managed funds, the amount of tax you pay is based on the prescribed investor rate (PIR) you have set in the app. If you can’t remember your selection, please read on for instructions on how to view and reset this PIR rate.

Tax is usually calculated annually, at the end of the tax year (31 March) -- but it may be calculated earlier, if you sell units of a PIE fund. The custodian appointed on your behalf (Trustees Executors) keeps a record of how much tax needs to be paid (or returned to you) with each calculation. They also make any payments to (or from) the IRD on your behalf. This will be deducted (or paid) into the individual managed fund holding in April. If for any reason your portfolio balance looks different, this is likely linked with this tax payment or credit.

Please always make sure your PIR is correct in the app > click on person icon (top right) > go to Investor Profile. Set your PIR.

Inland Revenue (IRD) make completing your annual tax return easier – by automatically calculating if you’ve paid the right amount of tax, using the information provided by the likes of your employer and investment providers. Here, we pay tax on your behalf.

If you need to file an IR3 form, you should include the relevant income distribution details. Please ask your accountant to assist with this if you are new to understanding tax on investment portfolios.