New to New Zealand: when FIF starts
Most new arrivals are outside the FIF rules for about 4 years as transitional residents. Some people who arrived from 1 April 2024 can use the revenue account method for shares they already held.
Your FIF exemption ends on 30 June 2027. The FIF rules apply from 1 July 2027; your first full FIF income year is 2028/29.
| Became NZ tax resident | 10 June 2023 |
| Last day of the window | 30 June 2027 |
| FIF rules apply from | 1 July 2027 |
| Income year it ends in | 2027/28 |
| First full FIF income year | 2028/29 |
- The window runs to the last day of the 48th month after the month you became resident, and needs no NZ residence in the 10 years before (IR1024, April 2026; IRD transitional residents page, updated 17 June 2026).
- If you or your partner apply for Working for Families, the exemption ends (IR461 April 2026 p22 note 3). We treat it as ending the day before you applied; check the exact date with IRD.
- In the year the window ends, the rules apply for part of the year. How FDR treats a part year needs your accountant.
- If you arrived on or after 1 April 2024 after at least 5 years away, the revenue account method may apply to some shares: see below.
Worked example shown. Change any figure to see your own result (needs JavaScript).
Revenue account method
Since 1 April 2025, some new migrants can be taxed on dividends plus 70% of gains when they sell, instead of FDR or CV, for shares they already held when they arrived.
On these answers you can use the revenue account method for these shares: dividends plus 70% of gains are taxed when you sell.
| Dividends | $2,000.00 |
| Gain on sale 1 | $15,000.00 |
| Net gain | $15,000.00 |
| 70% of the net gain | $10,500.00 |
| RAM income before losses | $12,500.00 |
| RAM income | $12,500.00 |
| Tax band | Rate | Income in band (whole dollars) | Tax |
|---|---|---|---|
| $78,100 to $180,000 | 33% | $12,500 | $4,125.00 |
| Tax on this income | $4,125.00 | ||
| Income tax on it | $4,125.00 |
- Eligibility here is our reading of IR461 p17 (in force from 1 April 2025). Whether you qualify once a transitional residence ends needs confirming with IRD or your accountant.
- Apportioning a gain by days resident is our assumption about the enacted rules and NEEDS CONFIRMATION. Leave the days blank for no apportionment.
- If you leave New Zealand, a deemed sale at market value applies, ignored unless you sell within 3 years (IR461 p18).
- A bill would open RAM to everyone for unlisted shares. It lapsed at the election and is NOT LAW.
Worked example shown. Change any figure to see your own result (needs JavaScript).
Questions people ask
How long is the transitional resident exemption?
About 4 years: it ends on the last day of the 48th month after the month you became NZ tax resident (IR1024). It ends sooner if you or your partner apply for Working for Families (IR461 p22).
What is the revenue account method?
Since 1 April 2025, some new migrants can be taxed on dividends plus 70% of gains when they sell, instead of FDR or CV, for shares they already held when they arrived.
Calculators
Every FIF tool
Your FIF tax for the year
Holdings in, the $50,000 test, FDR and CV side by side, the lower allowed method, tax and your IR3 boxes.
Open →The $50,000 test
Cost, not market value, on any day of the year. Couples, joint holdings, trusts and the 4-year look-back.
Open →Fair dividend rate calculator
5% of your 1 April value plus the full quick sale adjustment, with last in, first out matching.
Open →Comparative value calculator
Closing value plus sales and dividends, less opening value and purchases, with the loss floor and the method choice.
Open →IRD exchange rates for FIF
Inland Revenue’s end-of-month, mid-month and rolling 12-month rates, with a converter.
Open →Under $50,000: dividend tax
Below the threshold your foreign dividends are ordinary income. Tax, foreign tax credit and IR3 boxes.
Open →Is this a FIF?
ASX shares, NZ PIE funds, employee shares, foreign super, crypto: in or out of the rules.
Open →Overseas shares or an NZ PIE fund
The same money taxed both ways, side by side. Figures only, no recommendation.
Open →Is the threshold $100,000 yet?
No. Dated status of the lapsed bill, and the proposal on your own figures, marked NOT LAW.
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