Are share gains taxed in New Zealand?

There is no general capital gains tax, so a long-term investor often is not taxed on gains from New Zealand and Australian shares. But if you are trading, or bought intending to resell, gains can be taxable as income.

What are the FIF rules?

If your overseas shares, outside Australia, cost more than a threshold, the foreign investment fund rules generally apply, taxing a deemed return rather than just dividends. The threshold is set by Inland Revenue.

Am I an investor or a trader?

It depends on your intention and activity. Holding for the long term and for dividends points to investing; frequent buying and selling for profit points to trading, where gains are taxable. The line can be unclear, so get advice.

Share Investor vs Trader Tax Calculator

This New Zealand calculator helps share investors understand when gains may be taxable, the key distinction between investing and trading, and how the FIF rules can apply to overseas shares. You enter your situation, and it gives an indicative view of the likely tax treatment, with a prompt to check the rules, demystifying one of the most confusing areas of NZ tax for everyday investors.

Where are the shares?

Total cost of overseas shares

How do you invest?

FIF threshold (cost)

indicative tax treatment

This is general guidance, not advice. There is no general capital gains tax, but trading gains are taxable as income, and the FIF rules tax a deemed return on overseas shares (outside Australia) costing over the threshold. The threshold and rules are set by Inland Revenue and the area is complex, so confirm your position or get advice.

How it works

The tool looks at three things: where your shares are, how much your overseas shares cost, and whether you behave as an investor or a trader. New Zealand and most Australian shares held long term often have untaxed gains, but trading makes gains taxable. Overseas shares outside Australia costing more than the FIF threshold generally fall under the FIF rules, which tax a deemed return rather than just dividends. The result combines these into an indicative view.

Worked example

A long-term investor in New Zealand shares often pays tax only on dividends, not gains. But someone with $40,000 of United States shares is under a $50,000 FIF threshold, so the FIF rules may not yet apply, while at $60,000 they generally would. A frequent trader, by contrast, is taxable on their gains wherever the shares are.

Related calculators

FIF Method Comparison Calculator: FIF methods.
Crypto Gain Tax Calculator: crypto gains.
Dividend Calculator: dividend income.
Income Tax Calculator: tax on income.

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