There are different tax rules for different types of shares. Find out whether the foreign investment fund rules or the general income tax rules apply to your investments.
When the foreign investment fund rules apply
If you have foreign shares that cost you more than NZ$50,000 (in total) to buy, the foreign investment fund rules may apply to you for those shares.
Foreign investment funds (FIFs)
If the FIF rules apply, you need to calculate and include FIF income in your tax return. You do not apply the general income tax rules to any dividends you receive or share sales.
When the general income tax rules apply
The general income tax rules apply if you hold any of the following types of shares.
- New Zealand company shares.
- Australian listed companies’ shares as listed on our share exemption tool.
- Foreign shares that cost you less than NZ$50,000 (in total) to buy.
Foreign Investment Fund Australian listed share exemption tool
Dividend income
Dividends companies pay are taxable income — this includes dividends from foreign companies.