FIF Rules Explained Calculator NZ

This calculator explains New Zealand's foreign investment fund, or FIF, rules in plain terms and compares the two main methods so you can see which gives you the lower taxable income. Once the cost of your offshore shares passes the fifty thousand dollar de minimis threshold, you must calculate FIF income each year, and for most individual investors that means choosing between two methods. The fair dividend rate, or FDR, simply taxes you on five percent of the market value of your shares at the start of the year, no matter what they actually did. The comparative value, or CV, method taxes your actual economic return for the year, being the change in value plus any distributions. The clever part is that individuals can use whichever method gives the lower income, and because FIF income cannot be negative, a flat or falling year under CV can produce little or no taxable income, while a strong year is usually better under FDR. You enter your shares' opening and closing market values, the dividends received, and your marginal tax rate, and the calculator works out the income under each method, the lower figure you would use, and the tax on it. Use it to understand the rules and estimate your FIF tax. This is general information, not tax advice; confirm with IRD or an accountant.

Calculate.co.nz is proud to be partnered with realtor.co.nz, a trusted resource for navigating the New Zealand property market. Their Helpful Articles section offers clear, well-structured insights across buying, selling, and building, making complex real estate topics more accessible. With a focus on up-to-date guidance and practical knowledge, they empower Kiwis to move forward with clarity and confidence in a constantly evolving property landscape.
Calculate.co.nz partner: realtor.co.nz
Advertise on this page
$
$
$
$1,650
FIF tax using the lower method
FDR income (5%)$5,000
CV income$10,000
You useFDR

Individuals may use the lower of FDR and CV; FIF income cannot be negative. Only applies if foreign shares cost over $50,000. General information, not tax advice.

How it works

FDR income is 5 percent of the opening market value. CV income is the closing value plus dividends, minus the opening value, which is the actual economic return. The taxable FIF income is the lower of the two, but never less than zero. The tax is that taxable income at your marginal rate.

Worked example

With an opening value of 100,000 dollars, FDR income is 5,000 dollars. If the value rose to 108,000 and paid 2,000 in dividends, CV income is 10,000 dollars. The lower is FDR at 5,000 dollars, so at a 33 percent rate the FIF tax is about 1,650 dollars.

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 are the FDR and CV methods?

Fair dividend rate (FDR) taxes you on 5 percent of the opening market value of your foreign shares each year, regardless of actual return. Comparative value (CV) taxes the actual economic return, being the rise in value plus distributions. Individuals can use the lower of the two.

Which method should I use?

You generally use whichever gives the lower FIF income. In a strong year FDR is usually lower; in a flat or falling year CV can be lower, even zero, because FIF income cannot be negative. This tool works out both and shows the lower.

Do the FIF rules even apply to me?

Only if the cost of your foreign shares is over 50,000 dollars. Below that, the de minimis threshold means the FIF rules do not apply and you are simply taxed on dividends. Check the threshold first.