Tool

FIF tax, estimated.

New Zealand taxes directly held overseas investments under the Foreign Investment Fund rules. This tool runs the two methods most individuals use — FDR (5% of opening value) and CV (actual gain) — and checks the NZ$50,000 de-minimis. Educational arithmetic, not tax advice.

IRD — FIF rules

Your foreign holdings (attributing FIF interests)

Total cost of all FIF interestsWhat you paid, cumulatively — used only for the NZ$50,000 de-minimis test

NZ$

Opening market value (1 April)Value at the start of the income year

NZ$

Closing market value (31 March)

NZ$

Purchases during the year

NZ$

Sales proceeds during the year

NZ$

Your tax rate on this incomeDirectly held FIF income is taxed at your marginal rate; inside a PIE fund the fund pays at your PIR (max 28%)

FDR method — 5% of opening value

$5,000

taxable income → tax at 33%: $1,650

CV method — actual gain

$12,000

(closing $112,000 + sales $0) − (opening $100,000 + purchases $0) = $12,000 → tax at 33%: $3,960

Lower of the two (individuals may choose each year)

$5,000 via FDR

Estimated tax at 33%: $1,650

Simplified annual arithmetic for ordinary shares held all year: quick-sale adjustments, non-ordinary shares, foreign superannuation, currency-conversion rules and the ASX exemption are not modelled. The method choice applies to your whole FIF portfolio, not per holding. This is educational arithmetic from IRD's published method definitions — not tax advice; confirm your position with IRD guidance or a tax professional.

FIF questions

What is the NZ$50,000 FIF de-minimis threshold?

The de-minimis rule: if the total COST of your attributing overseas investments (not their current value) stays at or under NZ$50,000, a natural person is generally outside the FIF rules — overseas dividends are simply taxed as income. Cross the cost threshold and the FIF methods apply to the whole portfolio, not just the excess.

What is the difference between the FDR and CV methods?

FDR (Fair Dividend Rate) deems your income to be 5% of the opening market value of your FIF portfolio at the start of the income year, regardless of actual performance. CV (Comparative Value) measures the actual change: closing value plus sales, minus opening value and purchases. Individuals and eligible family trusts may use whichever gives the lower figure each year — and under CV a negative result means nil income, not a claimable loss.

Do ASX-listed Australian shares count as FIF investments?

Generally no — shares in most ASX-listed Australian resident companies are exempt from the FIF rules and are taxed like NZ shares (dividends taxable). The exemption has conditions, and Australian managed funds / ETFs do NOT get it — they are usually attributing FIF interests.

Do I need this calculator if I invest through a NZ PIE fund?

No. When you hold international shares via a NZ PIE managed fund, the fund itself handles FIF calculations inside the PIE and your tax is finalised at your PIR (capped at 28%). The FIF rules bite when you hold foreign shares, ETFs or funds directly — for example via an overseas brokerage.