{
 "meta": {
  "title": "New Zealand FIF rules for 2025/26 and 2026/27, machine-readable",
  "publisher": "fifcalculator.co.nz (Crucible Investments Limited)",
  "url": "https://fifcalculator.co.nz/data/fif-rules-2026-27.json",
  "licence": "CC BY 4.0",
  "checked": "2026-11-12",
  "sources": {
   "IR461": {
    "title": "Guide to foreign investment funds",
    "url": "https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir400---ir499/ir461/ir461.pdf",
    "date": "2026-04"
   },
   "ITA": {
    "title": "Income Tax Act 2007 (ss CQ 5, DN 6, EX 38, EX 46, EX 51, EX 52)",
    "url": "https://legislation.govt.nz/act/public/2007/97/en/latest/",
    "date": "accessed 2026-11-10"
   },
   "TT2007": {
    "title": "IRD tax technical: New tax rules for offshore portfolio investment in shares",
    "url": "https://taxtechnical.ird.govt.nz/new-legislation/act-articles/taxation-savings-investment-and-miscellaneous-provisions-act-2006-and-taxation-annual-rates-of-incom/new-tax-rules-for-offshore-portfolio-investment-in-shares",
    "date": "Act enacted 2006-12-18; article undated; accessed 2026-11-12"
   },
   "TIB3111": {
    "title": "Tax Information Bulletin Vol 31 No 11, currency conversion pp 2 to 4",
    "url": "https://www.taxtechnical.ird.govt.nz/-/media/project/ir/tt/pdfs/tib/volume-31---2019/tib-vol31-no11.pdf",
    "date": "2019-12"
   },
   "FS2025": {
    "title": "Proposed foreign investment fund changes, fact sheet",
    "url": "https://www.taxpolicy.ird.govt.nz/-/media/project/ir/tp/publications/2025/fs-fif-fund-rule-changes.pdf",
    "date": "2025-03"
   },
   "BC2026": {
    "title": "Bill commentary: Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill",
    "url": "https://www.taxpolicy.ird.govt.nz/-/media/project/ir/tp/publications/2026/2026-27-bill/bc-fbt-simplification-tax-bill.pdf",
    "date": "2026-09 (published 2026-09-10)"
   },
   "IRD_DRR": {
    "url": "https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-income/foreign-investment-funds-fifs/foreign-investment-funds-deemed-rates",
    "date": "2026-04-30"
   },
   "IRD_FX_EOM_2025": {
    "url": "https://www.ird.govt.nz/-/media/project/ir/home/documents/managing-my-tax/overseas-currency-rates/end-of-month/overseas-currency-rates-2025---end-of-month.pdf",
    "date": "accessed 2026-11-12"
   },
   "IRD_FX_EOM_2026": {
    "url": "https://www.ird.govt.nz/-/media/project/ir/home/documents/managing-my-tax/overseas-currency-rates/end-of-month/overseas-currency-rates-2026---end-of-month.pdf",
    "date": "accessed 2026-11-12"
   },
   "IRD_FX_ROLL_2026": {
    "url": "https://www.ird.govt.nz/-/media/project/ir/home/documents/managing-my-tax/overseas-currency-rates/rolling-12-month-average-and-mid-month/overseas-currency-rates-2026-rolling-12-month-average-and-mid-month.pdf",
    "date": "accessed 2026-11-12"
   },
   "IRD_FX_PAGE": {
    "url": "https://www.ird.govt.nz/overseas-currency",
    "date": "2026-11-04"
   },
   "IRD_TAX_RATES": {
    "url": "https://www.ird.govt.nz/income-tax/income-tax-for-individuals/tax-codes-and-tax-rates-for-individuals/tax-rates-for-individuals",
    "date": "2025-06-03"
   },
   "IR3G_2026": {
    "url": "https://www.ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir1---ir99/ir3g/ir3g-2026.pdf",
    "date": "2026-08"
   },
   "HATCH_SAMPLE": {
    "url": "https://app.hatchinvest.nz/tax/sample_fif_report_2025.pdf",
    "date": "search summary only, accessed 2026-11-12"
   },
   "CGT_GUIDE": {
    "title": "capitalgainstax guide shares-and-fif.mjs",
    "url": "local: _build/capitalgainstax/guides/shares-and-fif.mjs",
    "date": "2026-11-10"
   }
  },
  "status": "Current law as at 12 Nov 2026: $50,000 de minimis. The $100,000 threshold and other FIF changes are in a bill introduced 10 Sep 2026 that lapsed at the dissolution of Parliament and needs reinstatement by the next government (election 7 Nov 2026, preliminary results only, official results 27 Nov 2026, no government formed). Proposal cases are kept separate under proposal_test_cases and are NOT LAW.",
  "note": "General information, not tax advice."
 },
 "current_law": {
  "de_minimis": {
   "amount_nzd": 50000,
   "test": "FIF rules apply to a natural person if total cost of attributing interests held at any time in the year while NZ resident is MORE THAN 50000. Exactly 50000 is exempt.",
   "measure": "cost, not market value",
   "eligible": [
    "natural_person",
    "trustee_eligible_trust_type_A"
   ],
   "type_A_trusts": [
    "testamentary trust within 5 income years of death, or court-ordered damages trust",
    "compensatory trust under court order by relative or guardian",
    "trust settled by ACC"
   ],
   "not_eligible_note": "Ordinary family trusts are type B (CV choice) but not type A, so on our reading they have no 50000 exemption. Companies have none.",
   "joint_holdings": "each holder counts their share of jointly held cost; each person has their own 50000",
   "exempt_interests_excluded_from_cost": true,
   "crossing_mid_year": "whole year is a FIF year and all attributing interests are in; the first 50000 is not exempt",
   "opt_in": "may include FIF income below the threshold; then FIF income arises in later years if any of the preceding 4 returns included FIF income from interests costing 50000 or less at all times in that year",
   "cost_special_cases": {
    "share_split_or_nontaxable_bonus": "allocate original cost by market values at the event",
    "non_monetary_cost": "market value of the item given",
    "acquired_before_2000_01_01": "actual cost, or half the market value on 2007-04-01",
    "previously_EX39_exempt_acquired_before_2005_01_01": "market value at start of the 2013 income year",
    "life_policy": "exclude term life premiums that do not increase surrender value"
   },
   "source": "IR461 pp5, 9, 23, 24; ITA s CQ 5(1)(d) and (e); s DN 6"
  },
  "fair_dividend_rate": {
   "rate": 0.05,
   "formula": "0.05 * opening_market_value + quick_sale_adjustment",
   "opening_market_value": "total market value of FDR interests at start of income year",
   "losses": "none",
   "dividends": "not taxed separately (fee rebates are extra income)",
   "consistency": "if FDR used for one interest, use for all that year unless law prevents",
   "not_for": "non-ordinary shares (ITA s EX 46(10))",
   "source": "IR461 pp11, 14, 16, 19; ITA s EX 52(3), (5)"
  },
  "quick_sale_adjustment": {
   "required_when": "an FDR interest is acquired or increased in the year and later disposed of or reduced in the same year",
   "value": "min(sum over FDR interests of peak_holding_method_amount, max(0, sum over FDR interests of quick_sale_gain_amount))",
   "peak_holding_method_amount": "0.05 * peak_holding_differential * average_cost",
   "peak_holding_differential": "min(max_holding - start_holding, max_holding - end_holding)",
   "average_cost": "total cost of acquisitions or increases in the year / total shares acquired in the year",
   "quick_sale_gain_amount": "for each same-year acquisition later disposed of: gain - (shares * average_cost); gain includes sale proceeds and amounts derived from holding (dividends) on those shares",
   "matching": "LIFO",
   "share_reorganisation": "use EX 54 figures",
   "source": "ITA s EX 52(6) to (14); IR461 p15"
  },
  "comparative_value": {
   "formula": "(closing_value + gains) - (opening_value + costs)",
   "gains": "all amounts derived from holding or disposing in the year, including dividends, foreign withholding tax and credits",
   "costs": "acquisition expenditure in the year plus foreign income tax on FIF income paid by the person",
   "opening_value_currency": "uses the previous year's exchange rate basis",
   "who_for_ordinary_shares": [
    "natural_person",
    "trustee_eligible_trust_type_B",
    "share_user_returning_share_transfer"
   ],
   "floor": "for persons who could have used FDR, total CV loss across those interests reduced to 0",
   "choice": "individuals and type B trusts may use CV instead of FDR in any year; switch freely between years, not within a year; same method for all choosable interests",
   "source": "IR461 pp11, 14, 16, 19; ITA s EX 46(6), (8)(b); s EX 51"
  },
  "cost_method": {
   "formula": "0.05 * opening_value + peak_holding_method_amount",
   "when": "FDR allowed but 1 April market value not available except by independent valuation",
   "opening_value": "0 if acquired in year; else audited public NAV or independent valuation if chosen; else 1.05 * last_year_opening_value (same holding); + increase * average_cost (holding up); * opening_shares / previous_shares (holding down)",
   "cannot_combine_with_CV": "current law (BC2026 p67); bill would allow (NOT LAW)",
   "source": "IR461 pp12, 17, 25"
  },
  "deemed_rate_of_return": {
   "formula": "opening_book_value * deemed_rate (plus change formula and top-up income where relevant)",
   "when": "only where s EX 47 requires, in practice non-ordinary shares where CV is impractical",
   "rates": {
    "2025-26": 0.0784,
    "2024-25": 0.0804,
    "2023-24": 0.0863,
    "2022-23": 0.0815,
    "2021-22": 0.0601,
    "2020-21": 0.0443,
    "2019-20": 0.0505,
    "2018-19": 0.0586,
    "2017-18": 0.0644,
    "2016-17": 0.0628,
    "2026-27": null
   },
   "source": "IR461 p11; IRD_DRR (2026-04-30); ITA s EX 46(5)"
  },
  "revenue_account_method": {
   "formula": "dividends + 0.7 * gains_on_disposal (losses at 0.7, ring-fenced to RAM income, carried forward)",
   "in_force": "from 2025-04-01 (Taxation (Annual Rates for 2025-26, Compliance Simplification, and Remedial Measures) Act 2026, 30 Mar 2026)",
   "eligible": "natural persons resident (not transitional) on or after 2024-04-01 after at least 5 years non-resident; trusts whose principal settlor qualifies",
   "interests": "unlisted foreign shares acquired before residence (no market-value redemption; not 80%+ ineligible shares); extended RAM covers all foreign shares for citizenship-based taxpayers",
   "exit": "deemed disposal on leaving NZ, disregarded unless sold within 3 years",
   "v1_scope": "flag only, do not compute",
   "source": "IR461 pp12, 17, 18, 19; BC2026 p44"
  },
  "currency": {
   "methods": [
    "actual_rate_each_day (mid-month rate accepted for that month)",
    "rolling_12_month_average (12-month year)",
    "rolling_average_of_mid_month_rates (period not 12 months)"
   ],
   "consistency": "same method for all interests, and keep using it",
   "conversion": "NZD = foreign_amount / rate, where rate = foreign units per NZD 1; round rate to 4 dp where possible",
   "not_for_AFI": "rolling average not allowed for AFI",
   "published_usd": {
    "eom_2025_03_31": 0.571,
    "eom_2026_03_31": 0.5724,
    "rolling_2026_03_15": 0.587,
    "mid_2026_03_15": 0.5805
   },
   "source": "IR461 p13; TIB3111 p2; IRD_FX_PAGE; IRD_FX_EOM_2025; IRD_FX_EOM_2026; IRD_FX_ROLL_2026"
  },
  "foreign_tax_credits": {
   "cap": "min(foreign tax paid, DTA limit, NZ tax on that interest's FIF income)",
   "no_credit_if": "segment is a loss or nil",
   "carry_forward": "not for FDR, CV, CM, DRR",
   "ineligible": [
    "Australian franking credits",
    "tax on UK dividends"
   ],
   "australian_nz_imputation_credits": "reduce tax; capped by reference to FIF income if dividend exceeds it; no carry forward",
   "australian_rwt": "refundable even if FIF income is 0",
   "source": "IR461 p20; IR3G_2026 pp22 to 23"
  },
  "filing": {
   "return": "IR3",
   "boxes": {
    "40": "foreign rights disclosure yes or no",
    "17A": "total overseas tax paid",
    "17B": "total overseas income (includes FIF income)"
   },
   "ir1261": "required; per income type and jurisdiction; FIF income may all go under jurisdiction 'overseas'",
   "provisional_tax": "RIT over 5000 means provisional tax next year; standard option = RIT * 1.05 in 3 instalments",
   "source": "IR3 2026; IR3G_2026 pp19, 22, 51 to 53; IRD reporting overseas income page (2026-05-29)"
  },
  "exemptions": {
   "ASX_listed": "official ASX list, Australian resident not treated as resident elsewhere, franking account, not stapled",
   "Australian_unit_trusts": "adequate turnover or distributions (EX 32)",
   "Australian_10pct": "income interest of 10% or more in an Australian-resident FIF subject to Australian tax (EX 35); include indirect interests",
   "employee_share_schemes": "grey list company employer or parent, ESS with disposal restriction unexpired or expired under 6 months at start of year (EX 38)",
   "NZ_PIE": "not a FIF interest for the investor; fund handles FIF income and pays tax at PIR",
   "transitional_residents_and_nonresidents": "outside the rules",
   "source": "IR461 pp4, 6 to 8; ITA s EX 38; IRD PIE pages"
  }
 },
 "NOT_LAW_proposal": {
  "status": "NOT LAW. Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill, introduced 10 Sep 2026; lapsed at dissolution unless reinstated by the new Parliament.",
  "threshold": 100000,
  "from_income_year": "2026-27",
  "last_checked": "2026-11-12",
  "bill_commentary": "https://www.taxpolicy.ird.govt.nz/-/media/project/ir/tp/publications/2026/2026-27-bill/bc-fbt-simplification-tax-bill.pdf"
 },
 "test_results": {
  "current_law": "33 of 33 pass",
  "proposal": "4 of 4 pass (NOT LAW)",
  "built": "2026-11-12"
 }
}