NZ tax · How-to guide
How to File FIF Tax in NZ (2026)
Updated Reviewed quarterly
A plain-English, step-by-step walkthrough of filing Foreign Investment Fund (FIF) income on your IR3 — from the threshold test to choosing FDR or CV.
Direct answer · How do I file FIF tax in New Zealand?
Step by step
Filing FIF income on your IR3, step by step
- 1
Check whether you are over the FIF threshold
Add up the cost basis (what you paid in NZD, plus brokerage and FX cost) of all your foreign-listed shares and foreign ETFs. If the total went above NZ$50,000 (source) at any point in the tax year, the FIF rules apply for that year. Below the threshold, you declare actual dividends received instead. NZ-domiciled PIE funds (Smartshares, Kernel) do not count toward the threshold.
- 2
Choose your FIF calculation method (FDR or CV)
Decide which FIF method to use. Most NZ retail investors use the Fair Dividend Rate (FDR) method, which deems 5% (source) of your opening market value as income. The Comparative Value (CV) method — actual gains plus dividends — can produce a lower result in a flat or falling year. The election is annual and made within the rules set out in IRD guide IR461. Compare them side by side at FDR vs Comparative Value.
- 3
Gather your broker statements and tax reports
Collect the annual tax report from each platform you use (for example Hatch, Stake, Sharesies or Interactive Brokers). Most NZ-focused platforms compute FIF income under both FDR and CV so you can compare. Cross-check the figures against your own purchase records, as platform reports can miss off-platform transfers in.
- 4
Calculate your FIF income
Work out your FIF income under your chosen method for the tax year. Under FDR the deemed amount is based on the opening market value of your holdings; under CV it reflects the actual change in value plus dividends. If a platform report already computes this, use it, but understand how the figure was derived. Where your situation is not straightforward, a tax adviser can confirm the calculation.
- 5
Enter FIF income on your IR3 return
Report the FIF income in the overseas-income section of the IR3 individual income tax return. The IR3 is filed after the end of the NZ tax year (31 March). You can file online through myIR or on paper. Keep the method and the figures consistent with the FIF calculation you completed.
- 6
Keep your records
Retain your purchase records, platform tax reports, FIF calculations and a note of the method you used. IRD can ask you to support the figures, and the method you elect affects how future years are calculated. Good records also make the following year straightforward.
This is the typical NZ retail investor process. FIF has numerous exceptions (trusts, multiple entities, transitional residency, non-equity assets) that this guide does not cover.
Before you start
What you need on hand
- Your cost basis in NZD for each foreign holding — the purchase price plus brokerage and FX cost at the time you bought.
- The annual tax report from each platform you use (most NZ-focused platforms compute FIF income under both FDR and CV).
- The opening market value of each holding at the start of the tax year, for the FDR calculation.
- A record of any purchases and sales during the year, which the CV method and the quick-sale rules can require.
- Your myIR login to file the IR3 online, or a paper IR3 if you prefer.
FAQ
Filing FIF tax — common questions
How do I file FIF tax NZ?⌄
Check whether your total foreign-share cost basis is over the NZ FIF de-minimis threshold, choose a FIF calculation method (most retail investors use the Fair Dividend Rate), gather your broker tax reports, calculate your FIF income under that method, and enter it in the overseas-income section of your IR3 individual tax return. Keep your records in case IRD asks you to support the figures.
Do I need to file FIF tax if I'm under NZ$50,000?⌄
If your total foreign-share cost basis stayed under the NZ FIF de-minimis threshold for the whole tax year, the FIF rules do not apply and you instead declare the actual dividends you received. The threshold is tested at any point in the year, so a single day above it can bring you into FIF for the whole year. NZ-domiciled PIE funds do not count toward the threshold.
Which IR form do I use for FIF?⌄
FIF income is declared on the IR3 individual income tax return, in the overseas-income section. The detailed rules and worked examples for the FIF methods are set out in IRD guide IR461. If you have income from other sources you would generally already be filing an IR3.
FDR or CV — which method should I use?⌄
The Fair Dividend Rate (FDR) method deems income from your opening market value and is what most NZ retail investors use. The Comparative Value (CV) method uses your actual gain plus dividends and can produce a lower result in a flat or falling year. Many NZ platform tax reports compute both so you can compare; the election is annual and made within the IR461 rules. Where the choice materially affects your bill, a tax adviser can help.
When is FIF tax due in New Zealand?⌄
FIF income is returned on your IR3 for the tax year ending 31 March, and the return is filed after year-end. Filing and payment dates depend on whether you file yourself or through a tax agent, and whether you are in the provisional-tax regime. Check the current due dates with IRD or your tax adviser for your circumstances.
Does FIF apply to all my overseas ETFs?⌄
FIF generally applies to foreign-domiciled ETFs and most foreign shares once you are over the threshold. NZ-domiciled PIE funds (such as Smartshares and Kernel) are excluded from FIF, and Australian-resident-listed shares have a separate carve-out. The rules have several exceptions, so confirm the treatment of each holding against IRD guidance or with an adviser.
Related
FIF tax explained
What the FIF regime is, the threshold, and the exemptions.
FDR vs Comparative Value method
Choose the right FIF method — worked example with NZ$ figures.
NZ$50,000 de minimis exemption
How the threshold works — and the joint-filing trap.
After-tax return calculator
Estimate the after-tax impact of FIF on a holding.
FIF — glossary definition
Quick plain-English definition of Foreign Investment Fund.
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