CV · Comparative Value
Comparative Value (CV) method
A Foreign Investment Fund calculation method that taxes closing market value minus opening market value, plus distributions received, less contributions made — used when it produces a lower result than FDR.
The Comparative Value (CV) method is one of four FIF calculation methods under New Zealand's Foreign Investment Fund rules. CV computes taxable FIF income as: closing market value minus opening market value, plus distributions received during the year, less contributions made during the year.
For most foreign shares the default method is Fair Dividend Rate (FDR). Individuals can elect CV on an interest-by-interest basis each year where it produces a lower taxable amount — typically in a year where the foreign holding fell in value or paid no dividends. The election is made interest by interest and year by year; it is not a permanent choice.
CV is also the default method for some non-share FIF interests where FDR is not available. IRD guidance lists the specific FIF-interest classes that must or may use CV.
Primary sources
Related terms
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FDR
Fair Dividend Rate (FDR)
The default Foreign Investment Fund calculation method for most foreign shares — taxes a deemed 5% return on the opening market value of the FIF interest, regardless of actual gain or loss.
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FIF rules
Foreign Investment Fund (FIF)
A New Zealand tax regime that taxes NZ-resident individuals on the holding of most foreign shares and non-PIE foreign funds above a NZ$50,000 cost-basis de minimis threshold.
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PIR
Prescribed Investor Rate (PIR)
The tax rate applied to your share of a PIE fund's taxable income. NZ has three PIRs for resident individuals — 10.5%, 17.5% and 28% — chosen using a two-year look-back of taxable + PIE income.