FIF and Hatch: reading the Hatch FIF report for your IR3

Hatch sells a FIF report after each tax year that does the FDR and CV arithmetic for the US shares and funds you hold there. Hatch's own help pages are unusually clear about how it calculates, which makes it easier to check and to combine with other platforms. This guide covers what the report gives you, what it does not, and how its figures become your IR3.

What the Hatch FIF report gives you

Hatch's help centre says that, for tax years from 31 March 2022 on, you can order a custom FIF tax report after the end of each tax year, and that it uses both the FDR and CV methods. Hatch explains the calculation on a separate help page (25 October 2024). All the platform facts below come from Hatch's own help pages, read on 12 November 2026. Each is a single source.

Hatch also says the report does not tell you how much tax to pay: "we can't calculate your tax for you".

What it does not cover

• Other platforms. The report covers Hatch holdings only. The $50,000 test, and the choice between FDR and CV, run across everything you hold (IR461 pp9 and 14).
• Your tax and credits. You still need your marginal rate, and the foreign tax credit cap per company (IR461 p20).
• Transfers. A Hatch help page (25 October 2024) says shares transferred in can be recorded at the current share price rather than what you paid, which can push the cost estimate over $50,000 until Hatch corrects it, and that the app "can't (yet) update your investment cost to remove the incorrect peak". Shares transferred out are counted in peak cost up to the transfer date. Search summaries of Hatch's sample report also say holdings transferred in or out during the tax year are left out of the FIF report altogether; we could not open the sample to confirm, so treat that as UNVERIFIED and check your own report.
• Corporate actions. Hatch says splits, ticker changes and mergers add complexity and covers them in a separate guide.
• The threshold status. Hatch's article of 29 May 2026 describes the $100,000 threshold as proposed, from 1 April 2026, and was written before the election. The bill lapsed at the dissolution of Parliament. The threshold is $50,000 today and $100,000 is NOT LAW; see our status page.

Currency and the cost figure

Hatch says that every time you buy or sell, the NZ dollar value of the transaction is calculated "using the exchange rate on the day", and that "changes to the exchange rate won't impact your investment cost on shares you own" (Hatch help, 28 January 2026). That is a sensible way to fix NZ dollar cost for the $50,000 test.

For FIF income, Inland Revenue lets you use either the actual rate on the day of each amount or a rolling 12-month average, applied to every holding, and once you start on the rolling average you must keep using it (IR461 p13; IRD currency page, 4 November 2026). Inland Revenue accepts its mid-month rate as an actual rate for that month (IR461 p13). A platform's own day rate is a form of actual rate, but if you combine Hatch's NZ dollar figures with another platform that used a different source, the methods may not match exactly. Our exchange rates guide explains the options.

A check against Hatch's sample report

Hatch publishes a sample 2025 FIF report. According to search summaries (we could not open the PDF, so UNVERIFIED), it shows an opening value of $31,082.90, and 5% of that as $1,554.15. Our engine gets the same: 5% x $31,082.90 = $1,554.145, which rounds half up to $1,554.15. That tells us Hatch keeps cents and rounds at the end, the same way our calculator displays results. It is one of the cross-checks on our methodology page.

Worked example: Hatch plus another platform

Hatch's help page on using the calculation is clear on the key rule: if you only hold overseas shares on Hatch, put the lower of the two Hatch figures in box 17B; if you hold them elsewhere too, work out FDR and CV totals for all your investments, add each method across platforms, and enter the lower total. Its own illustration has combined FDR of $5,598.88 against combined CV of $3,590.19, so CV goes in.

Here is a smaller example. Your Hatch report shows FDR $1,554.15 and CV $900. Another platform's holdings give FDR $1,000 and CV $2,500.

FDR is the lower total, so you return $2,554.15, even though CV was lower on Hatch alone. With $65,000 of other income in 2025/26 the extra tax is $766.20 (it all falls in the 30% band), before foreign tax credits.

Two traps when combining. First, if Hatch reports CV as 0 because your Hatch holdings made a loss, do not add 0: use the actual negative figure from the Excel workings, because the floor at zero applies to your total CV across all your holdings, not platform by platform (ITA s EX 51(7) and (8)). Second, Hatch warns that if you held the same company or fund on more than one platform, simple addition may not work, and that combining FDR totals needs the same quick sale approach on all of them. The Act compares quick sale totals across the whole portfolio (ITA s EX 52(7)), so where you traded on both platforms, enter all the trades into our FDR calculator together.

Moving Hatch figures into our calculator

Our calculator does not import Hatch files yet. To rebuild or combine your figures, type in:

If our FDR and CV results differ from Hatch's for the same inputs, the usual causes are a transfer, a corporate action, or a different exchange rate. Tell us if you find a case where the inputs match and the results do not.

Filing: boxes 17A and 17B, IR1261 and Question 40

Hatch's help page says box 17A comes from your annual Hatch tax report and box 17B is the lower method total. In Inland Revenue's terms, box 17B is your total overseas income and box 17A is your overseas tax credit, with an IR1261 overseas income summary filed alongside (IR3G pp19 and 22). FIF income can be grouped under the jurisdiction "overseas" if you keep a supporting report (IRD, Reporting your overseas income, 29 May 2026). The Hatch Excel workings are a good supporting report for your Hatch holdings.

The credit you can claim for US withholding tax is capped per company at the NZ tax on that company's FIF income, so in a year when CV is very low your credit can be smaller than the tax withheld (IR461 p20). Our calculator applies that cap. Our IR3 guide covers Question 40 and the disclosure exemption.

Hatch says you do not need an accountant to use the report, and that is true of the arithmetic. This guide is general information, not tax advice; check with your accountant if you have transfers, a trust, or holdings in more than one name. Rules checked 12 November 2026.

Questions

Does the Hatch FIF report include shares I hold on Sharesies or IBKR?

No. It covers your Hatch holdings only. Add each method across all platforms and use the lower total.

Hatch shows my CV as 0. Can I just add 0?

Only if your other platforms also made a CV loss. The zero floor applies to your total CV, so use the real negative figure from the Hatch workings when you combine.

I transferred shares into Hatch this year. Is my report right?

Check it. Hatch says transfers can distort the cost estimate, and search summaries say transferred holdings are excluded from the FIF report (UNVERIFIED). You may need to calculate those holdings yourself.

Does Hatch tell me how much tax to pay?

No. Hatch says the report gives FIF income, not tax. Our calculator adds your other income and works out the tax and the credit cap.