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Foreign investment fund calculator
About this calculator
This calculator will help you determine your foreign investment fund (FIF) income using the fair dividend rate (FDR), comparative value (CV) or the cost calculation methods.
Use of this tool does not result in data being submitted to us.
When to use this calculator
This calculator is for the use of New Zealand tax residents who have investments in foreign companies of which the purchase price is:
- greater than NZ$50,000, or
- if less than $50,000 - a person elects to pay tax in accordance with the tax rules for offshore portfolio investment in shares (FIF rules).
You will be able to complete a FIF calculation to calculate your taxable income using:
- the combined FDR and CV calculator
- the CV only method where you are not allowed to use the FDR method
- the Cost method if you are unable to determine a market value of your investment, but have obtained an independent valuation.
Note: This calculator should not be used to calculate the FIF income arising from share holdings in a company that has undergone a "share reorganisation".
There are additional methods of calculating your FIF income that are not covered by this calculator.
What you will need
You will need documents relating to:
- the market value of your investments at the beginning of your income year - see Note below
- for the comparative value method the exchange rate of your investments at the end of your last income year
- company names and share classes you have invested in
- the number of shares owned at the beginning of your income year
- shares acquired and or disposed of during your income year
- the monetary value of any gross dividends received
- the date of the transactions
- the currency in which the transactions were conducted
- the foreign currency exchange rate to New Zealand dollars
- the market value of your investments at the end of your income year if you wish to use the CV method.
Note: For the comparative value method this is at the beginning and end of your income year. Note the market value at the beginning of the income year is the market value at the end of your last income year
You are permitted to use either the exchange rate on the day of the transaction, or the average of the close of trading spot exchange for the 15th day of each month. If you are using the exchange rate for the 15th of the month, this can be obtained from our mid month overseas currency rates tables. If you are using the exchange rate of the day of transaction, you will have to enter the correct rate according to your own records.
Our end of month overseas currency rates tables can be used to determine the correct exchange rate at the end of the month (this can also be used for the market value at the beginning of the income year).
For the cost method you may also need:
- an independent valuation/revaluation of your investment at the beginning of the relevant income year
- the number and value of shares owned at the beginning of the previous income year
- the number and value of shares acquired during the previous income year
- an average exchange rate to NZ$ of all acquisitions made during the previous income year
- the number of shares owned at the beginning of the current income year.
After you finish
This calculator will provide you with your FIF taxable income in New Zealand dollars from either the FDR,CV or Cost calculation methods. Use this information for completion of your foreign investment fund disclosure notice, which may be included as part of your income tax return.
You can also use this information to assist with the calculation of your provisional tax liability.
Print and or save a PDF document for your own records.
No information you provide while using the calculator is recorded, saved or in any way referenced by Inland Revenue. The calculator is stored on a secure part of our website to prevent unauthorised interception. If you are unable to access the calculator, you may need to update your browser and/or firewall settings.
