NZ tax · Reviewed 2026-05-02
The NZ$50,000 (source) de minimis exemption.
If the total cost base of your foreign-listed shares stays under the threshold, you may be able to ignore FIF entirely and pay tax only on actual dividends received. The threshold is per-individual and tested at any point during the year — easy to trip over.
Direct answer · How much is the FIF de minimis threshold in NZ?
How it works
If the total cost base in NZD of all your foreign-listed equity holdings stays under NZ$50,000 throughout the tax year (1 April – 31 March), the FIF regime does not apply[1]. Instead, you declare actual dividends received as foreign income on your IR3, taxed at your marginal rate.
The exemption is per individual and per tax year. Cross the threshold even briefly — a single purchase that takes you from NZ$48,000 to NZ$52,000 — and FIF applies for the whole year, retroactive to 1 April[2].
The joint-account trap
Splitting cost base between partners — done right
The threshold is per individual. A couple can each hold up to NZ$49,000 of foreign cost base for a combined NZ$98,000 — both sit under de minimis, neither triggers FIF.
The trap: a single joint account is presumed 50/50 unless documented. NZ$80,000 in a joint Hatch account = NZ$40,000 per person → both under the threshold, no FIF. NZ$120,000 in the same joint account = NZ$60,000 per person → both over, FIF applies to both. The fix is sometimes as simple as opening separate accounts or formalising a documented unequal split.
This is one of the corners of NZ tax where structure choice meaningfully affects the bill — talk to an adviser if you're near the line.
Practical implications
- Mix US-listed and NZ-listed strategically. NZX PIE funds (USF, NZ20, FNZ) don't count toward the threshold. You can hold unlimited NZ-listed exposure without crossing the line.
- Track NZD cost, not USD cost. The threshold is denominated in NZ dollars — a falling NZD increases your cost base in NZD terms even if you bought no new shares. Re-check after big FX moves.
- Sales reduce cost base. If you sell down US-listed holdings to drop back under, FIF may not apply for the year — but check the timing and consult an adviser before relying on this.
- Australian shares carve-out. ASX-listed Australian-resident-listed companies are usually exempt from the FIF cost-base count under a separate rule, but the carve-out has conditions — verify per company.
Sources
- [1]FIF — when FIF rules apply (NZ$50,000 threshold) — Inland Revenue (NZ) (2026)
- [2]IR461 — Foreign investment funds (full guide) — Inland Revenue (NZ) (2026)
FAQ
How much is the FIF de minimis threshold in New Zealand?⌄
The NZ FIF de minimis threshold is NZ$50,000 of cost basis per individual NZ tax resident. Below this threshold, FIF rules do not apply and you only pay tax on actual dividends received at your marginal rate. The threshold is tested at any point during the tax year (1 April–31 March) — even a single day above NZ$50,000 triggers FIF for the whole year. NZ-domiciled PIE funds (Smartshares, Kernel) do not count toward the threshold.
Is the NZ$50,000 measured at year-end or at any point?⌄
At any point during the tax year (1 April to 31 March). If your cost base touched NZ$50,001 even briefly, FIF applies for that whole year. Conservative practice is to leave a buffer below the threshold rather than tracking the cost base daily.
Does the threshold apply per individual or per couple?⌄
Per individual NZ tax resident. A couple can each hold NZ$49,000 for a combined NZ$98,000 without triggering FIF — provided the legal ownership is split. Joint accounts default to a 50/50 split unless documented otherwise. Watch the trap if one person's share crosses the threshold.
Are NZX-listed ETFs counted toward the threshold?⌄
No. NZ-domiciled PIE funds — including all Smartshares and Kernel ETFs — sit outside the FIF regime entirely. Only foreign-domiciled holdings (US-listed ETFs, foreign mutual funds, direct foreign shares) count toward the NZ$50,000 cost base.
