NFI
Notified Foreign Investor (NFI)
A PIE-tax sub-regime for eligible non-resident investors. Foreign-sourced income inside the PIE is taxed at 0%; NZ-sourced income is taxed at the relevant non-resident withholding-tax rate.
The Notified Foreign Investor (NFI) regime allows non-resident investors in a NZ Portfolio Investment Entity to be taxed on a look-through basis. Foreign-sourced income that the PIE earns on behalf of the NFI is taxed at 0%; NZ-sourced income is taxed at the relevant non-resident withholding-tax rate (typically 15% on interest, 0–15% on imputed dividends).
A PIE must be specifically set up to support NFIs and the investor must complete an NFI declaration with the manager. If the PIE is not NFI-eligible, non-residents are taxed at the standard 28% non-resident PIE rate on all PIE income — typically less tax-efficient for offshore investors than NFI status.
NFI status is most relevant for migrants returning to NZ, Australians holding NZ PIEs, and managed-fund managers who distribute across borders. The OMI for each PIE-structured scheme usually states whether the scheme supports NFIs.
Primary sources
Related terms
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PIE fund · PIE
Portfolio Investment Entity (PIE)
A tax-efficient New Zealand fund structure where investor tax is capped at the investor's Prescribed Investor Rate (PIR), with a maximum of 28%.
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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.
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OMI
Other Material Information (OMI)
A supplementary FMA-required disclosure document containing material information about a fund or scheme — typically conflicts of interest, related-party transactions, fee waivers, auditor/trustee/custodian identities — that is not included in the PDS.