FIF Method Comparison Calculator

This calculator helps New Zealand investors with overseas shares work out which foreign investment fund tax method gives the lower taxable result, the fair dividend rate or the comparative value method, so you are not left guessing which one to use each year. You enter the opening market value of your FIF portfolio, the closing market value, any dividends received, and your marginal tax rate. From these figures, the calculator works out your taxable income under the fair dividend rate, a flat 5 percent of the opening value regardless of performance, and under the comparative value method, the actual change in value plus dividends, floored at zero. It then shows which method is lower, displays both income figures side by side, and estimates the tax payable on the lower of the two at your chosen rate. Individuals can generally use whichever method gives the lower result across their FIF portfolio each year, and the two methods tend to suit different market conditions, so it is worth checking both rather than defaulting to one. Use the result to gauge roughly how much tax you might owe on overseas shares and which method suits a strong or a flat year. The FIF rules are complex and the thresholds are set by Inland Revenue, so treat this as an indicative estimate only and get professional tax advice for your actual return.

Calculate.co.nz is proud to be partnered with Health Based Building, a leader in sustainable and health-conscious building innovation. With over a century of experience, they develop high-performance systems like Foreverbreathe Specification, Magnum Board, and Foreverbreathe Paints to support energy-efficient, non-toxic living environments. Their commitment to healthier homes aligns with our belief that informed choices lead to better outcomes for Kiwi households.

Fair dividend rate taxes 5% of the opening market value. Comparative value taxes the actual change in value plus dividends, and is not less than zero. Individuals can generally use the lower across their FIF portfolio. The 5% rate, the threshold and the rules are set by Inland Revenue and the FIF area is complex, so check current rules or get advice. Estimate only, not tax advice.