The Kernel Cash Plus Fund is structured as a Portfolio Investment Entity (PIE) investment. It is therefore taxed at your Prescribed Investor Rate (PIR), rather than your Resident Withholding Tax (RWT) rate.
As a PIE, tax is capped at 28%. So, if you have an RWT rate of 33% or 39%, you will pay less tax!
The fund mainly earns interest, and the tax is calculated on the income generated during the period. While there are occasionally capital gains, the majority of your return is treated as taxable income.
A simple way to estimate your tax is to multiply your Prescribed Investor Rate (PIR) by the fund’s performance.
You can read more about how PIE tax works in our FAQ.