3.1 How to check if you are required to file FIF income in New Zealand
Foreign investment funds are a type of offshore investment with special tax rules applied to New Zealand tax residents.
A FIF includes a foreign company, foreign unit trust, overseas superannuation scheme, or a foreign life insurance policy (if it is not offered or entered into in New Zealand). There are various exemptions from the FIF rules. Two more common ones are explained below.
If you're an individual investor and the total cost of your attributing interests in FIFs is less than NZ$50,000, you're eligible for the de minimis exemption and don't need to calculate income under the FIF rules.
Some shares in ASX-listed Australian companies are exempt from the FIF rules. (See 3.1.1.) In the case of Australian listed share FIF exemption, you will be taxed under the same rules that apply to New Zealand shares and do not need to report your income under the FIF regime.
3.1.1 FIF Exemption for ASX-listed Australian companies
The ASX-listed Australian company exemption applies when you own shares in a company that:
is included on the official ASX list
is an Australian resident and not treated as a resident in another country under an agreement between Australia and that other country
maintains a franking account, and
offers stock that is not stapled.
You can refer to the ASX-listed share FIF exemption checker provided by New Zealand's Inland Revenue Department to confirm if your holdings are exempt from the FIF rules.
Before starting, ensure you have the ASX ticker code for the company.
Disclaimer: The content of this page is for educational purposes only. It is designed to bring to your attention the potential tax obligations that may apply to you when investing in financial products. Tiger Broker New Zealand does not provide any advice, including tax advice, and is not responsible for providing any guidance, opinions, or suggestions about tax for you. If you have any questions about your personal circumstances and tax obligation, we suggest you contact your tax advisor directly for more information.