A foreign investment fund (FIF) is an offshore investment held by a New Zealand-resident taxpayer who holds:
It does not include interest earned from term deposits, bonds, debentures or money lent.
Under the rules introduced in 2007, you have foreign investment fund (FIF) income when you have an investment that is an attributing interest in a foreign investment fund (FIF). This occurs when income from your investment is attributed to you, even though you may not have received any income at that point in time.
For more information about FIF read our guide A guide to foreign investment funds and the fair dividend rate (IR461).