FIF De Minimis $50k Threshold Checker NZ

This checker tells you whether New Zealand's foreign investment fund, or FIF, rules apply to your overseas shares, using the fifty thousand dollar de minimis threshold. The FIF rules are one of the more confusing parts of the tax system for everyday investors, especially now that platforms like Sharesies and Hatch make buying US and other offshore shares so easy. The key relief is the de minimis threshold: if the total cost of your foreign shares is fifty thousand dollars or less, the FIF rules do not apply at all, and you are simply taxed on any dividends like ordinary income. Cross that threshold, and the FIF rules apply to your whole offshore holding, requiring you to calculate FIF income each year under methods such as the fair dividend rate. Crucially, the test is based on what you paid for the shares, the cost, not their current market value, so a holding that has grown well past fifty thousand dollars in value can still be under the threshold. You enter the total cost of all your foreign shares, and the checker tells you whether you are under or over the threshold and your headroom. Certain Australian shares are exempt, and the test is per person. This is general information, not tax advice; confirm your position with IRD or an accountant.

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Under the threshold: FIF rules do not apply
based on the $50,000 cost de minimis test
Threshold$50,000
Headroom$10,000

Based on cost, not market value, and per person. Certain Australian shares are exempt. General information, not tax advice.

How it works

The checker compares the total cost of your foreign shares against the 50,000 dollar de minimis threshold. At or below 50,000 dollars the FIF rules do not apply and it shows your headroom; above it, the FIF rules apply to the whole holding and it shows how far over you are.

Worked example

If your foreign shares cost 40,000 dollars in total, you are 10,000 dollars under the threshold, so the FIF rules do not apply and you are simply taxed on dividends. Buying another 15,000 dollars would push you over, and the FIF rules would then apply to the lot.

Related calculators

Data sources: the rates and thresholds on this page are maintained against Inland Revenue. Figures are checked twice monthly.

Frequently asked questions

What is the FIF de minimis threshold?

If the total cost of your foreign shares is 50,000 dollars or less, you are under the de minimis threshold and the FIF rules do not apply. You are simply taxed on dividends. Once the cost exceeds 50,000 dollars, the FIF rules apply to the whole holding.

Is the threshold based on cost or value?

It is based on the cost of the shares, what you paid, not their current market value. So your holding can grow well above 50,000 dollars in value and still be under the threshold if the original cost was 50,000 dollars or less.

Does the threshold apply to all foreign shares?

It applies to most offshore shares held by individuals. Certain Australian listed shares are exempt from FIF. The de minimis test is per person, so partners are tested separately. Check the detail with IRD or an accountant.