We are here to make the end of the financial year as easy as possible for you. We'll take care of all calculations, reporting and processing of any payments owed/made on your investments in any Kernel funds.
When is tax calculated and paid on my fund investments?
We aim to optimise your growth by keeping your money working for you as long as possible. Unlike options that deduct tax daily or monthly, tax on Kernel funds is calculated and paid only once a year in early April (unless you sell your units mid-year).
This annual cycle allows your full balance to potentially compound throughout the year before any tax is settled. Because the final calculation depends on the specific fund type and the tax credits we apply on your behalf, the exact amount is finalised once the tax year concludes on 31 March.
Here's a timeline of what to expect in 2026:
Date | What's happening |
Up until end Wednesday, 25 March | Please ensure your Prescribed Investor Rate (PIR) and Resident Withholding Tax (RWT) are up to date on your Kernel account.
To check and update your tax rates, follow these steps. |
Thursday 26 March | PIR is locked and changes cannot be made. Tax is being assessed. |
Thursday 2 April | The final tax calculations will be run and if you are in a tax payable position, this will be reflected as a negative balance in your wallet. Any cash in your wallet on this day will be used to pay your tax obligation (including KiwiSaver). Please note: this can disrupt a fund Auto-Invest. If you are owed a tax refund, this will be added to your wallet. |
5:00pm, Tuesday 7 April | Deadline to deposit cash into your wallet to cover PIE tax. |
Wednesday 8 April | Where the cash in your wallet doesn't cover your tax liability, we will sell down whole units from your largest dollar value fund holding to cover any tax owed. |
Friday 10 April | Tax liability fund sell downs complete. Whole units were sold to cover tax so there may be a small residual of cash left in your wallet. |
After Friday 10 April | Tax will be paid to the IRD on your behalf and our team will prepare your annual tax report. |
Mid May | Your PIE tax certificate will be available for download. |
From 2 April (tax time), you may notice two balances in your wallet: Total balance and Available balance.
Your Available balance includes any tax you owe. If tax is due, this amount may appear as a negative number.
Once your tax has been paid, either by adding cash to your wallet, selling funds (we do this for you), or a combination of both, your Available balance will update and return to normal. A negative available balance simply means there’s tax to be paid. It doesn’t mean anything has gone wrong.
Where can I see my tax payment?
Towards the end of April, you will be able to see the tax payment under the 'Activity' tab within the Kernel platform. This will show once the payment has been processed with the IRD.
When will I receive my tax statement?
You will be able to view and download your Kernel tax statement by navigating to 'Reports' and then 'Tax reports', on your Kernel profile, from 15 May.
What happens if I am owed a tax refund?
If you are owed a tax refund, this will be credited to your wallet on 2nd April.
What if I joined part way through the year or have already paid some tax in my Kernel funds?
The tax amount we calculate and deduct at the beginning of April is the outstanding amount due at year end. If you have sold units in a fund during the year, you may have already paid some tax as part of that process. Similarly, if you joined Kernel or invested in a new fund during the year, the tax amount has been prorated based on your time and amount in the fund.
Do I have to pay FIF tax on my fund holdings?
One of the benefits of investing in a PIE fund is that Kernel handles the complex tax requirements, including Foreign Investment Fund (FIF) rules, at the fund level. For most investors, this means there is no need to declare this income or perform separate FIF calculations in a personal tax return.
What if I don't want Kernel to sell down my fund units to cover my tax liability?
If you prefer that we do not sell any of your units to cover your tax, you can simply deposit the required amount into your Kernel wallet. You might notice your wallet showing a negative available balance from 2 April; this represents the tax amount owing.
To ensure your units are not sold, you must make this deposit so that it clears by 7 April at the latest. While most deposits clear within a few hours when using the correct reference, please keep in mind that payments from a new bank account can sometimes take a little longer to appear in your wallet. We recommend making the transfer a couple of days early to ensure everything is processed in time.
Important: If you have an active fund Auto-Invest set for 7 April, it may process as usual. Please ensure your wallet has enough funds to cover both your investment and your PIE tax to avoid an automatic sell-down of your fund units, or stop your Auto-Invest.
Can I choose what fund Kernel sells down to cover my tax?
At this stage, you cannot specify a particular fund for us to sell down to cover your annual tax obligations. When tax is due, our system automatically sells down whole units from your largest dollar value fund holding.
If you have a specific preference for which assets are used to pay your tax, we recommend that you manually sell down your chosen fund in advance. By doing this, the resulting cash will sit in your wallet and can be used to cover the tax amount when it is processed, ensuring your preferred investment strategy remains on track.
Note: The Kernel sell down trading cycle operates on business days only. Due to the Easter public holidays, no transactions will be processed from 3–6 April. If you are planning to manually sell down a fund to cover tax, please factor in these non-trading days as well as settlement time (T+2). You can learn more about order timing here.
What if my fund Auto-Invest failed to run because there wasn't enough cash in my wallet?
If a fund Auto-Invest fails, it will try again for another 3 business days. Deposit money into your Kernel wallet to allow your Auto-Invest to run.
Have other tax questions? Check out our Tax FAQs.
Important disclaimer
Kernel are not tax advisors. The information provided here is for general guidance only and does not constitute tax or financial advice. Tax laws and individual circumstances can vary, so we recommend consulting with a qualified tax professional if you have specific questions about your tax obligations.