The Koinonia Fund is registered as a Portfolio Investment Entity (PIE). The fund pays tax on investment income earned on the Prescribed Investor Rate (PIR) of its members rather than the flat rate of 30%. This allows fund members in lower income brackets to have their investment income taxed at either 12.5% or 21%, while everyone else is taxed at the higher rate of 30%.

Members must advise the Koinonia Fund of their PIR when they join, or if their rate changes. If no PIR is provided investment income will be taxed at the higher rate of 30%.

The Koinonia Fund has created a flow chart to help determine the correct PIR. It can be viewed here.

A PIR election form is available for download in forms.