IRD's own documentation assumes you already know what you're doing. This guide doesn't. Here is exactly what to click, what numbers to enter, and where — for the 2025-26 tax year.
Trying to file without having the right numbers in front of you is the most common reason people get stuck halfway through. Have all of this ready before you log in.
All amounts must be converted to NZD. Use the IRD's mid-month exchange rates, available at ird.govt.nz/roles/tax-agents/exchange-rates. Use the rate for the month the relevant event occurred - opening value uses the April 2025 rate, closing value uses the March 2026 rate, dividends use the month they were received. Do not use bank rates or spot rates.
Not everyone with overseas investments needs to file FIF. Work through this checklist before proceeding.
| Situation | FIF filing required? |
|---|---|
| Total original cost of overseas investments was $50,000 or less for the entire year | No. Declare dividends only in the "other income" section. |
| All overseas investments are held through NZ-domiciled PIE funds (Smartshares, Kernel, InvestNow PIE) | No. PIE tax is final - no IR3 required for this income. |
| All overseas shares are Australian shares on the ASX All Ordinaries exemption list | No. Declare dividends only. |
| Cost basis exceeded $50,000 at any point during the year, with direct overseas holdings | Yes. FIF rules apply for the full year. |
| Mix of PIE funds and direct holdings, with direct holdings over $50,000 at cost | Yes for the direct holdings. PIE funds excluded from threshold calculation. |
If your CV calculation results in zero FIF income (portfolio fell or was flat), you still need to file the IR3 and complete the overseas income summary. You cannot simply ignore the filing obligation because your calculated income is zero. Enter zero as your FIF income and complete the disclosure.
Do not try to calculate FIF income inside myIR. myIR is a filing interface, not a calculator. Calculate your FIF income separately first, then enter the result.
You need one number: your total FIF income in NZD under whichever method (FDR or CV) gives the lower result. If you used FDR, that is 5% of your opening market value plus any quick sale adjustment. If you used CV, that is the change in portfolio value plus gains received, minus costs, floored at zero.
The free FIF calculator on this site calculates both FDR and CV simultaneously and identifies the lower result. Run your numbers there before logging into myIR. Open the FIF calculator →
If you use Hatch, download your FIF Annual Tax Report from the Hatch app - it pre-calculates both methods. If you use Sharesight, run the FIF report under Portfolio Reports. Both reports show you the number to enter in myIR.
Go to ird.govt.nz and click Log in to myIR. Enter your IRD number and password.
If you have not registered for myIR, you can register online - you will need your IRD number, date of birth, and a phone or email for verification. Allow 5-10 minutes for registration.
From late May, IRD issues automatic income tax assessments for people who only have salary, wages, interest and dividends. If you have FIF income, you will need to file an IR3 instead - you cannot simply accept the auto-assessment.
On your myIR home screen, look for any assessment notice. If IRD has issued one, you will need to file an IR3 to replace it, not just accept it. IRD's auto-assessment does not know about your overseas income.
From the myIR home screen, navigate to Income tax in the left-hand panel, then click File return. Select the 2025-26 tax year (1 April 2025 to 31 March 2026).
myIR will pre-populate your salary, wages, interest and dividend information from employer and bank reporting. Review these carefully before proceeding - they are sometimes wrong.
This is where most people get lost. The overseas income section in myIR is not clearly labelled for FIF specifically - it covers all types of overseas income including dividends, interest, employment income, and FIF.
Work through the IR3 sections until you reach the overseas income section. myIR presents the return as a series of pages - step through each one. When you reach the page asking about income types, select Yes to "Did you receive income from overseas?"
You will then be asked what types of overseas income you have. Select Foreign investment fund (FIF) income. You may also need to select dividends if you hold direct overseas shares below the FIF threshold, or other income types if applicable.
myIR will ask for your total FIF income. Enter the number you calculated before logging in - the lower of your FDR or CV result, in NZD. If your CV calculation resulted in zero, enter 0.
Do not include dividends separately if you are filing FIF under FDR or CV. Under both methods, dividends are already accounted for in the calculation. Adding them separately would mean counting them twice. This is one of the most common filing mistakes.
If you received USD dividends from your US ETFs and you are filing FIF under FDR or CV, do not also enter those dividends in the "overseas dividends" field. The dividends are already included in your FIF income calculation. Entering them separately will result in a higher tax bill than you legally owe.
myIR will ask you to enter the income broken down by country of investment. You can enter all FIF income under the jurisdiction "Overseas" if your holdings are spread across multiple countries - you do not need to split it by country unless you want to.
From the 2023 tax year onwards, anyone with overseas income must complete an IR1261 Overseas Income Summary - even if an exemption applies and your FIF income is zero. This is a separate form within myIR that many people miss.
After entering your FIF income in the IR3, myIR should prompt you to complete the IR1261. If it does not, you can access it directly in myIR under Returns and forms.
The IR1261 asks you to summarise your overseas income by type and jurisdiction. For FIF investors, you need to enter:
If you held overseas investments but FIF income was zero (because your CV result was zero or you were below the threshold), you still need to complete the IR1261 - enter zero for income and any withholding tax actually deducted.
Separate from the IR3 income return, you are required to file a FIF disclosure for each FIF interest you hold. This is the part IRD's guidance glosses over, and it is where most people get confused or simply give up.
A FIF disclosure is a separate form that tells IRD the details of each individual overseas investment - the company or fund name, the country, the opening and closing values, the method used, and the FIF income calculated. You file it as part of the same IR3 submission.
In the IR3, when you reach the overseas income disclosures section, look for the option to include a CFC/FIF disclosure. Select "Yes, this return will include a CFC/FIF disclosure."
myIR will then give you two options:
For each FIF interest (each ETF, fund or share you hold directly), you will need to enter:
You must use the same calculation method (FDR or CV) for all your FIF interests in a given year. You cannot use FDR for some holdings and CV for others. Choose whichever gives the lower total result across all holdings.
If you have multiple holdings (e.g. VOO and VTI and QQQ), complete a separate disclosure entry for each one. If you have a single diversified ETF (e.g. a Vanguard Total World fund), that is one entry.
IRD encourages you to attach supporting documentation to help them process your return. This is optional, not mandatory, but it reduces the chance of a follow-up query.
Attach as a PDF or spreadsheet:
You can also send supporting documents as a web message in myIR after filing - go to Messages and attach to a new message referencing your return.
If withholding tax was deducted from your overseas dividends before you received them - which is the case for most US ETF holders (typically 15% under the NZ-US tax treaty) - you may be able to claim a foreign tax credit to offset your NZ tax liability.
Foreign tax credits are entered in the overseas income section of the IR3, in the "Overseas tax paid" or "Foreign tax credits" field (labelled field 17A in the paper IR3).
Enter the total NZD amount of withholding tax deducted from your overseas dividends during the year. Your platform statement or annual tax summary will show this. Convert to NZD using the IRD mid-month rate for the month each dividend was received.
The foreign tax credit you can claim is capped at the NZ tax otherwise payable on that income. If your FIF income under FDR or CV is low relative to the withholding tax paid, you may not be able to claim the full credit. The credit cannot generate a refund beyond your NZ tax liability on the income.
Note: if you are filing FIF under FDR or CV and your FIF income is zero (CV result), you cannot claim any foreign tax credits for that year - because there is no NZ tax payable on the FIF income to offset the credits against.
Before submitting, myIR shows a summary of your return. Check these specific items:
Common errors to check for: double-counted dividends, missing exchange rate conversion, FIF income entered in the wrong field, overseas tax credits not applied.
Once you are satisfied, click Submit. myIR will show a confirmation screen with your terminal tax due date. Any tax owed is typically due on 7 February 2027 (unless you use a tax agent).
Pay via:
The standard filing deadline for the 2025-26 tax year is 7 July 2026. If you use a tax agent, an extension may be available - confirm with your agent. Late filing penalties start at $50 and increase with time. IRD has no automatic grace period for individual filers.
No. Hatch provides an excellent FIF Annual Tax Report that calculates both FDR and CV for your holdings, but the filing obligation is yours. You need to take the numbers from the Hatch report and enter them in myIR yourself, following the steps in this guide. Hatch cannot file on your behalf.
Yes - if your cost basis exceeded $50,000 at any point during the year, you have a filing obligation regardless of whether your calculated FIF income is zero. File the IR3, enter zero as your FIF income, complete the IR1261, and complete the FIF disclosure with zero income. Failing to file attracts late filing penalties even if no tax is owed.
Smartshares ETFs are NZ-domiciled PIE funds - no FIF filing required for those. Only your direct US shares count toward the $50,000 threshold and require FIF filing. If your direct US share cost basis is over $50,000, calculate FIF on those holdings only and file as described in this guide. Your Smartshares holdings are completely separate and do not appear in your IR3 at all.
Use IRD's published mid-month exchange rates, available at ird.govt.nz under "Roles - Tax agents - Exchange rates". Use the rate for the month in which the relevant event occurred. For opening market value, use April 2025. For closing market value, use March 2026. For dividends, use the month each dividend was received. Do not use bank rates, Google rates, or spot rates - IRD requires their specific published rates.
File an amended return. In myIR, go to Income tax, find your 2025-26 return, and select "Amend return." Complete the FIF disclosure section that was missed. You can also send the disclosure as an attachment to a web message in myIR, referencing your original return. IRD is generally accommodating for voluntary corrections made before any audit begins. If IRD contacts you first about missing disclosures, penalties may apply.
Yes, and for complex situations it is worth it. A tax agent who understands FIF will calculate both FDR and CV, select the better method, prepare the disclosure, and file everything. They also get an extension on the filing deadline - typically to 31 March of the following year rather than 7 July. The cost is typically $200-$500 for a straightforward FIF return. If you have significant overseas holdings, multiple platforms, or any uncertainty, the cost is almost certainly worth it.