What is the FIF tax rule?
The foreign investment fund (FIF) rules tax New Zealand residents on overseas shares and funds once their total cost goes over $50,000.
If the total cost of your offshore shares and funds that are not exempt stays at $50,000 or less throughout the income year, an eligible individual can usually be taxed on dividends instead.
Above the threshold, most individuals use the fair dividend rate method or, in a weak year, the comparative value method, and pay tax at their marginal rate.
In Fireball
For Interactive Brokers holdings, Fireball estimates your overseas shares cost against the $50,000 line. It is not a tax calculation.
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