How to file FIF income on your IR3: boxes 17A and 17B, IR1261 and Question 40

Once you have worked out your FIF income, filing it is a short sequence. On the IR3 individual return, FIF income goes in Question 17: total overseas income in box 17B and overseas tax paid in box 17A (IR3 2026; IR3G 2026 pp19 and 22). You add an Overseas income summary (IR1261), and you answer Question 40 on foreign rights, filing a FIF disclosure if one is needed. This guide walks through each step with a worked example.

The steps in order

1. Check you are in. Total cost of your FIF holdings over $50,000 on any day of the income year, or you opted in or are caught by the look-back (IR461 p9). Use our threshold checker.
2. Work out FIF income for all holdings, across every platform, using FDR or (if you can choose) CV, whichever is lower. See FDR or CV.
3. Work out your foreign tax credits, holding by holding (IR461 p20).
4. Box 17B: total overseas income, including your FIF income.
5. Box 17A: total overseas tax paid.
6. IR1261: one section per type of income and jurisdiction.
7. Question 40: foreign rights disclosure, and a FIF disclosure in myIR if required.
8. Attach proof of overseas tax paid (IR3G p22), and keep your workings.

Worked example

An individual with $95,000 of other taxable income held two FIF investments through the 2025/26 year (figures already in NZ$):

Total cost is $70,000, so the FIF rules apply. FDR is 5% × $80,000 = $4,000. CV is $8,800 ($7,200 on the ETF, $1,600 on the UK company). FDR is lower, so FIF income is $4,000.

Extra income tax on $4,000 at 33% is $1,320.00. After the $180 credit, $1,140.00 is left to pay (before any other credits on the return). If the US platform had withheld 30% ($360) because no W-8BEN was lodged, box 17A would still be $180: only the treaty rate can be credited (IR461 p20). See the W-8BEN guide.

Run your own figures in our FIF calculator; it produces these lines for you.

Box 17B: total overseas income

Box 17B takes all your overseas income, and FIF income is part of it (IR3 2026; IR3G pp19 and 22). Points to watch:

• Do not add FIF dividends on top. “Dividends received from overseas companies that are treated as FIFs ... are not taxable separately” (IR3G p21).
• Do add dividends from exempt holdings, such as qualifying ASX-listed companies, which are taxed as ordinary dividends (IR461 p7).
• Combine platforms. The method choice and the total are across everything you hold. A report from one platform covers only that platform.
• Cents. Our figures keep cents in box 17B; tax is worked out on whole dollars, as the IR3 drops cents from taxable income.
• Fee rebates paid to you are extra income under FDR (IR461 p14).

If CV reduces your FIF income to nil in a bad year, the FIF part of box 17B is $0 and there is no credit for foreign tax on those holdings.

Box 17A: overseas tax

The IR3 labels box 17A as total overseas tax paid. The credit you can actually use is limited (IR461 p20; IR3G pp22 to 23):

• to the rate allowed by the double tax agreement (15% for an individual’s US dividends under the NZ and US treaty, Article 10(2) as amended in 2008);
• to the New Zealand tax on that holding’s FIF income, not on the dividend;
• with no credit where that holding’s FIF income is nil or a loss, and no refund or carry forward of unused credits;
• with no credit for Australian franking credits or for tax paid on UK dividends.

Our calculator puts the creditable amount in box 17A, after these limits, not the raw tax withheld. That is our stated approach; if your accountant prefers to show the raw figure and let IRD apply the limits, follow their advice. The foreign tax credits guide has the detail.

The IR1261 overseas income summary

An Overseas income summary (IR1261) is required with one section per type of income and jurisdiction (IR3G p19). From the 2023 tax year on it is required even where a disclosure exemption applies (IR461 p21).

FIF income can be broken down by country, or all of it can go under the jurisdiction “overseas” (or “XX” if your software lacks “overseas”). If you combine several FIFs, keep a supporting report; an investment adviser’s report is acceptable (IRD “Reporting your overseas income”, 29 May 2026). Our calculator gives one line per type and country, and switches to a single “overseas” line when the country lines would not add up to the return figure, which happens when CV is reduced to nil. More in the IR1261 and disclosure guide.

Question 40 and the FIF disclosure

Question 40 asks whether you held rights in a foreign company, unit trust, superannuation scheme or life policy for which disclosure is required (IR3 2026). Investments in double tax agreement countries using CV or FDR may not need an extra disclosure (IR3G p53).

The annual International Tax Disclosure Exemption covers most people with: interests under 10% that are non-attributing; interests within the $50,000 threshold; or direct interests under 10% using FDR or CV in a treaty country (other than a PIE, widely held company, superannuation fund or guaranteed investment fund) (IR461 p21). The exemption does not remove the duty to return FIF income.

Where a disclosure is needed, you file it in myIR: File or amend a return, then in the disclosures section select “This return will include CFC/FIF disclosure” and enter each holding or upload the template. You need each investment’s name, its country, and its NZ$ market value at the start or end of the year (IRD disclosure page, 5 October 2026).

Common filing mistakes

• Reporting FIF dividends as well as FIF income. That taxes the same dividends twice (IR3G p21).
• Filing one platform’s report on its own when you hold FIF investments elsewhere too. The threshold, the method choice and box 17B all cover everything you hold.
• Claiming 30% US tax as a credit. Only the treaty rate can be credited (IR461 p20).
• Claiming UK tax or Australian franking credits. Neither is eligible (IR461 p20).
• Skipping the IR1261 because you are exempt from disclosure. The summary is still required (IR461 p21).
• Mixing exchange rate methods across platforms (IR461 p13; rates guide).
• Assuming the $100,000 threshold. It is NOT LAW; the bill lapsed. File on $50,000 (status page).

After you file

FIF income has no tax taken at source, so a large figure can lift your residual income tax. If your residual income tax (box 36A) is more than $5,000, provisional tax is payable for the next year; under the standard option it is this year’s residual income tax plus 5%, in three instalments (IR3G pp51 and 52). See FIF and provisional tax.

Check the filing due date on ird.govt.nz; it depends on whether you use a tax agent, and we have not confirmed this year’s dates on an IRD page. Keep your workings and records for each holding (records guide).

Rules checked 12 November 2026. General information, not tax advice; check with your accountant.

Questions

Do I put my FIF dividends in box 17B as well as FIF income?

No. Under FDR or CV, dividends from FIF holdings are not taxed separately (IR3G p21). Only the FIF income goes in, plus any dividends from exempt holdings.

Do I still need an IR1261 if I am exempt from disclosure?

Yes. From the 2023 tax year on, the overseas income summary is required even where a disclosure exemption applies (IR461 p21).

I hold shares on three platforms. Do I file three sets of figures?

No. You work out one FIF income figure across all holdings, choose one method for all of them, and put the total in box 17B. Keep each platform’s report as support.

What goes in box 17A if the US withheld 30%?

Only the creditable amount, which is capped at the 15% treaty rate (IR461 p20). The rest is not creditable in New Zealand.