2025–26 Tax Year NZ IRD

Foreign Investment Fund Calculator

Stop guessing your
FIF tax liability

Free, IRD-aligned calculator for NZ investors with overseas shares and ETFs. Compare FDR vs CV automatically and find your lowest legal tax outcome.

$50k Cost threshold
5% FDR rate
3 Methods covered
April NZ tax year start
Portfolio Details
Step 1
$
Use your cost basis — not current market value. ASX-listed individual shares and NZ-domiciled PIE funds are excluded. IRD FIF guidance →
FIF income is added to your other income and taxed at your marginal rate.
FIF Income Inputs
Step 2
FDR Method — 5% of opening value
$
$
Enter the pre-calculated quick sale adjustment — the lesser of your actual gain and the peak holding amount. See how to calculate this →
FDR Formula
(Opening × 5%) + Quick sales

FIF Tax Results

2025–26 NZ Tax Year

Side-by-side comparison
Method FIF Income Tax Saving

Quick answers

FIF tax: common questions

The $50,000 FIF threshold is based on the original NZD cost of your overseas investments — not their current market value. If the total purchase price of your attributing FIF interests exceeded NZD $50,000 at any point during the tax year, FIF rules apply to your full portfolio for that year. NZ-domiciled PIE funds (Smartshares, Kernel, InvestNow PIE), qualifying ASX individual shares, and KiwiSaver do not count toward the threshold.

Individuals and eligible trusts can use whichever produces the lower income each year. FDR (5% of opening market value) is better in strong market years when your portfolio returned more than 5%. CV (actual portfolio movement) is better in flat or falling years. You must apply the same method to all your FIF holdings — you cannot use FDR for some investments and CV for others in the same year. Use the Compare Both mode in this calculator to find your best option.

Hatch: Yes — US-listed ETFs and shares held on Hatch are direct FIF interests. If your total cost basis exceeds $50,000, FIF rules apply. Hatch provides a FIF report each year that calculates both FDR and CV for you. Sharesies: International shares held directly through Sharesies also count. NZ and qualifying Australian shares do not. NZ-domiciled PIE funds offered through Sharesies are excluded.

No. Smartshares ETFs (USF, USG, USH, UST, NZG, TWF and others) are NZ-domiciled PIE funds. The fund handles FIF tax internally at the PIE rate. You don't pay FIF tax personally and don't need to declare Smartshares holdings in your FIF return. This is the same for Kernel funds and InvestNow PIE portfolios.

FIF income is declared in your IR3 personal income tax return, filed for the year ending 31 March. The standard filing deadline is 7 July (or later if you use a tax agent). Log into myIR and add your FIF income in the foreign income section. IRD automatically receives overseas account data from many countries through the Common Reporting Standard (CRS) — undeclared FIF income carries penalties and use-of-money interest.

Read the full plain-English FIF guide →

About this calculator

This free FIF tax calculator is designed for New Zealand tax residents who hold overseas shares, ETFs, or managed funds directly — typically through platforms like Hatch, Sharesies, Interactive Brokers, or a foreign broker. It covers all three IRD-recognised calculation methods for individuals: FDR, CV, and Cost. Calculations follow IR461 (2025) and IRD QB 23/10 guidance. Updated for the 2025–26 tax year (1 April 2025 – 31 March 2026).

Disclaimer

This tool provides indicative calculations for educational purposes only. It does not constitute financial, tax, or legal advice. FIF rules are complex and your circumstances may differ. Always verify results with a qualified NZ tax adviser or use IRD's own tools before filing your IR3 return. Not affiliated with or endorsed by Inland Revenue.