Tool · Updated 2026-06-08
After-tax calculator: PIE @ PIR vs FIF @ FDR vs CV
The most consequential NZ-investor tax decision is which wrapper to hold the same exposure in: an NZ-PIE fund (Smartshares, Kernel) or a foreign-domiciled FIF fund (US-listed SPY, VOO, QQQ etc.). The math is mechanical but unintuitive — for some inputs the PIE wins, for others FIF FDR or CV wins. Enter your numbers below to see which.
Your assumptions
PIE @ PIR
$81,756
after-tax value · year 10
Total tax paid: $12,349
FIF @ FDR
$84,201
after-tax value · year 10
Total tax paid: $10,548
FIF @ CV
$79,072
after-tax value · year 10
Total tax paid: $14,319
On your assumptions ($50,000 invested, 7.0% assumed annual return, 10-year horizon, PIR 28.0%, marginal 33.0%), the lowest-tax wrapper is FIF (FDR) at $10,548 of total tax. The actual choice depends on whether the underlying ETF is structured as a NZ PIE (Smartshares, Kernel NZX-listed) or a foreign-domiciled FIF (US-listed SPY/VOO/QQQ etc.) — see PIE vs FIF for the structural detail.
Year-by-year detail (click to expand)
| Year | Gross return | PIE tax | PIE closing | FDR tax | FDR closing | CV tax | CV closing |
|---|---|---|---|---|---|---|---|
| 1 | $3,500 | $980 | $52,520 | $825 | $52,675 | $1,155 | $52,345 |
| 2 | $3,676 | $1,029 | $55,167 | $869 | $55,493 | $1,209 | $54,800 |
| 3 | $3,862 | $1,081 | $57,947 | $916 | $58,462 | $1,266 | $57,370 |
| 4 | $4,056 | $1,136 | $60,868 | $965 | $61,590 | $1,325 | $60,061 |
| 5 | $4,261 | $1,193 | $63,936 | $1,016 | $64,885 | $1,387 | $62,878 |
| 6 | $4,476 | $1,253 | $67,158 | $1,071 | $68,356 | $1,452 | $65,827 |
| 7 | $4,701 | $1,316 | $70,543 | $1,128 | $72,013 | $1,521 | $68,914 |
| 8 | $4,938 | $1,383 | $74,098 | $1,188 | $75,866 | $1,592 | $72,146 |
| 9 | $5,187 | $1,452 | $77,833 | $1,252 | $79,925 | $1,667 | $75,530 |
| 10 | $5,448 | $1,526 | $81,756 | $1,319 | $84,201 | $1,745 | $79,072 |
Methodology + caveats
PIE @ PIR: annual gain × PIR rate. Calculated by the fund manager. PIR capped at 28% regardless of marginal rate. Assumes NZ-domiciled PIE wrapper (Smartshares, Kernel NZX-listed funds).
FIF @ FDR: 5% × opening market value × marginal rate, regardless of actual return. Default for most NZ retail investors holding foreign equity above the NZ$50,000 cost-basis threshold. The 5% is deemed income, not actual.
FIF @ CV: actual NZD gain (including unrealised) × marginal rate. Cannot be negative (floor at zero — no loss deduction). Investors can elect annually between FDR and CV; pick the lower.
Assumptions: constant gross return year-over-year, fees paid from the fund at NAV (not modelled here), no contributions or withdrawals during the horizon, marginal rate stays constant, NZ tax law unchanged. None of these will hold exactly in real life — the calculator is a mechanical comparison of tax-method outcomes on your stated assumptions, not a forecast of returns or final wealth.
Not modelled: US 15% dividend withholding tax (under W-8BEN; refundable via IR3 foreign tax credit), platform fees, FX cost on USD positions, currency variance, the FIF de minimis (NZ$50,000 cost-basis) exemption that disables FIF for smaller portfolios.
General educational information only — not personalised advice. NZ tax rules change; check the current IRD position and consult a NZ-registered tax adviser before transacting.
Continue with
PIE vs FIF — full explainer
Structural comparison of the two NZ tax regimes.
FDR vs Comparative Value method
When to elect CV instead of FDR.
NZ$50,000 de minimis exemption
How the FIF threshold works.
NZX-listed ETFs by TER
21 PIE-taxed Smartshares + Kernel funds.
US-listed ETFs accessible from NZ
SPY / VOO / IVV — the FIF side of the comparison.
FAQ
After-tax calculator — common questions
What does this calculator compute? ⌄
For a given principal, assumed annual return, time horizon, PIR, and marginal income tax rate, the calculator compares three NZ-tax-method outcomes — PIE @ PIR, FIF @ FDR (Fair Dividend Rate), and FIF @ CV (Comparative Value) — year by year. Output is the final after-tax value and total tax paid under each method. All math is mechanical against current IRD tax mechanics; no return forecasting is involved.
Is this personalised tax advice? ⌄
No. The calculator is a general-information educational tool. It assumes constant return year-over-year, no contributions or withdrawals, constant marginal rate, and unchanged NZ tax law — none of which will hold exactly in real life. Always consult a NZ-registered tax adviser before transacting.
Why does FIF FDR sometimes lose to PIE even when PIR < marginal rate? ⌄
FDR taxes 5% of opening market value regardless of actual return. When your assumed return is below 5%, the FDR mechanic produces taxable income higher than your actual gain — you pay tax on phantom income. PIE only taxes the actual gain at the PIR rate, so it can win in low-return scenarios even when PIR < marginal. CV (taxing actual gain at marginal rate) can also beat FDR in those years and is annually electable.
Where does the 5% FDR rate come from? ⌄
Fair Dividend Rate is the default FIF calculation method for individual NZ tax residents. The 5% rate is set by NZ tax legislation (Income Tax Act 2007). See IRD's FDR method guide for the formal definition and qualifying-asset rules.
Does this model the NZ$50,000 de minimis exemption? ⌄
No. The calculator assumes the FIF regime applies (you're above the NZ$50,000 cost-basis threshold). For investors below the threshold, FIF rules don't apply and only actual dividends are taxable at the marginal rate. See /tax/de-minimis-explained/ for the threshold mechanics.
