Free, IRD-aligned calculator. Compare FDR vs CV automatically and find your lowest legal tax outcome.
The $50,000 threshold is based on original cost, not current value. If your cost basis exceeded $50,000 on even one day during the year, FIF applies for the full year. Note: the government has proposed raising this to $100,000 from 1 April 2026 — legislation is expected August/September 2026 and not yet in force.
The threshold is based on the original NZD cost of your overseas investments — not current market value. If your total purchase price exceeded NZD $50,000 at any point during the year, FIF rules apply for the full year. NZ-domiciled PIE funds, qualifying ASX individual shares, and KiwiSaver do not count.
Individuals can use whichever produces the lower income each year. FDR is better in strong market years (portfolio returned more than 5%). CV is better in flat or falling years. Use Compare Both mode to identify the lower result automatically. You must apply the same method to all your FIF holdings for the year.
Hatch: Yes — US-listed ETFs and shares on Hatch are direct FIF interests. Hatch provides a FIF report each year. Sharesies: International shares held directly count. NZ and qualifying Australian shares do not. NZ-domiciled PIE funds through Sharesies are excluded.
No. Smartshares ETFs are NZ-domiciled PIE funds. The fund handles FIF tax internally at the PIE rate. You don't pay FIF personally and don't declare Smartshares in your FIF return. Same for Kernel and InvestNow PIE portfolios.
FIF income is declared in your IR3 personal income tax return for the year ending 31 March. Standard deadline is 7 July. IRD receives overseas account data automatically through the Common Reporting Standard — undeclared FIF income carries penalties and use-of-money interest.
The Southern Portfolio explains the mechanics behind these calculations every week.
Subscribe for free