Glossary
What is the FIF de minimis threshold?
Updated Reviewed quarterly
The de minimis threshold is the NZ$50,000 cost-basis level below which FIF (Foreign Investment Fund) rules don't apply. If the total cost (NZD purchase price + brokerage + FX, summed across all your overseas-share holdings) stays below NZ$50K, you don't do FIF calculations — just declare actual dividends as ordinary income.
The threshold is per individual (couples can hold up to NZ$100K combined as separate holdings). It applies to cost-basis, not market value — growth above NZ$50K doesn't trigger FIF unless you actively buy more. NZ-domiciled PIE funds (Smartshares, Kernel) don't count toward the de minimis at all — they're NZ tax residents. The moment you cross NZ$50K cost-basis on direct overseas holdings, the entire portfolio falls under FIF for that tax year. Talk to a registered tax adviser before getting close.
Where you’ll see this term
- Deeper dive: NZ$50,000 de minimis explained — joint-filing trap, year-end vs any-point measurement, edge cases
- FIF — full IR461 explainer
- FIF — quick definition
- PIE fund — bypass de minimis
- NZ-listed ETFs (PIE, FIF-free)