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Ngā pūtea haumi o tāwāhi Foreign investment funds


A foreign investment fund (FIF) is an offshore investment that is:

  • a foreign company
  • a foreign unit trust
  • a foreign superannuation scheme
  • an insurer under a foreign life insurance policy.

Calculating FIF income

There are various exemptions from the FIF rules. If a FIF rules exemption does not apply, income from the attributing interest in a FIF will be calculated under the:

  • fair dividend rate (FDR) method
  • comparative value (CV) method
  • cost method (CM)
  • deemed rate of return (DRR), or
  • attributable FIF income method.

Income calculated under these methods is called FIF income.

Foreign investment fund income

FIF income is attributed to an investor. This may mean an investor has FIF income before actually receiving any money.

Disclosing a FIF interest

In many situations you must disclose your FIF interest. To do this you will need a few details:

  • the name of the investment
  • the country of incorporation or tax residence
  • the market value in New Zealand dollars at the beginning or end of your income year.

There are a number of exemptions from the FIF rules, which may mean that a disclosure of FIF interests is not required. When disclosure is required, this may be done in your tax return.