Thresholds & Exemptions
Start here before using the calculator. Some investors do not need to calculate FIF income because a threshold or exemption applies.
Check your FIF cost threshold
Enter purchases, sales, reinvested dividends, and ownership share, then choose the current or proposed threshold setting.
Check common exemptions
Review the ASX-listed Australian share exemption, RAM context, and other exemptions before calculating FIF income.
Under the threshold but received overseas dividends?
Use the Foreign Dividend Helper to prepare gross dividend, withholding tax, exchange rate, and IR1261 worksheet records.
FIF cost-threshold tracker
Track the NZD cost of non-exempt FIF interests through the year. For sale rows, enter the NZD cost basis of the units sold, not the sale proceeds.
NZ$50,000 is the threshold used for this tracker setting.
Use this for completed years covered by the current IR461 guidance.
Track purchases, sales, reinvested dividends, and your ownership share to see whether cost goes over NZ$50,000.
Record rule: include brokerage in cost, convert foreign purchases to NZD using the rate you choose consistently, and exclude holdings that are not attributing FIF interests.
Joint holdings: use your ownership percentage so only your share of the cost is counted.
The de minimis cost threshold
For many individual investors, this is the first exemption to check.
Current IR461 guidance uses a NZ$50,000 threshold. Budget 2026 proposes increasing it to NZ$100,000 from 1 April 2026 for the 2026-27 tax year, but that proposal may change before enactment.
How it works: cost, not market value
- •IR461 says natural persons and eligible trustees (type A) generally do not need to calculate FIF income if the total cost of their attributing interests was NZ$50,000 or less throughout the entire income year, unless they choose to opt in.
- •The threshold is based on cost, not current market value. IR461 says cost is generally the amount paid, with special rules for events such as share splits, non-monetary acquisitions, some life insurance policies, and older interests.
- •If you fall under this threshold, IR461 says you will generally pay tax only on dividends received and gains from share disposals if the interests are held on revenue account. Other rules may still tax income from the investments.
If you are under the threshold and received overseas dividends, go to the Foreign Dividend Helper rather than the FIF FDR/CV calculator.
If your transitional residency ended during the income year, do not rely on the ordinary threshold or calculator steps without checking the dates. Read the guide for the year your exemption ends.
Calculating Your Cost
- •Your "cost" is generally the amount paid for the attributing interest. Keep purchase records and check IR461's special cost rules where your situation is not a simple cash purchase.
- •This amount needs to be converted to New Zealand dollars using the exchange rate on the day you purchased the investment. Keep the purchase record and the rate you used.
- •There are specific rules for calculating cost if you acquired interests through things like share splits, or for non-monetary costs. See our Glossary or the current IRD guide IR461 for details.
What counts towards the threshold?
- •It's the total combined cost of all your investments that fall under the FIF rules (excluding already exempt investments like eligible ASX shares).
- •Reinvested Dividends: If you automatically reinvest dividends to buy more units or shares, the amount paid for those new purchases does add to your total cost.
- •Cash Dividends: Receiving cash dividends generally does not increase the cost of your attributing interests unless you use that cash to buy more shares or units.
Staying under the threshold
- •Keep careful track of the NZD cost of all your attributing FIF interests.
- •Be mindful when buying new investments so the additional cost does not push your total cost over the relevant limit.
- •If you're near the limit, consider taking dividends as cash instead of automatically reinvesting them.
Common Mistakes & Pitfalls
Going over the threshold, even briefly
If your total cost goes over the relevant threshold on any day during the income year, the exemption is lost for that year. All your attributing FIF interests become subject to the main FIF calculation rules for that year, and the threshold amount is not deducted.
Leaving out brokerage fees
Remember to include brokerage fees in your cost calculation.
Using the wrong exchange rate
Use the exchange rate from the date of purchase.
Joint Ownership Example
- •The threshold applies per person.
- •Under the current NZ$50,000 threshold, if you and your spouse/partner jointly own FIF investments that cost $100,000 in total, your individual shares of the cost would likely be $50,000 each. In this scenario, neither of you might exceed the threshold based only on the jointly held shares.
- •If the Budget 2026 NZ$100,000 proposal is enacted for 2026-27, the same idea would use the higher per-person threshold. Confirm the final law before relying on it.
ASX Listed Australian Shares Exemption
Many investments in Australian companies are exempt from the NZ FIF rules.
How the exemption works
The exemption generally applies if the investment is in shares of a company that:
- ✓Is listed on the official ASX (Australian Securities Exchange) list
- ✓Is resident in Australia (and not treated as resident elsewhere under a tax treaty)
- ✓Maintains an Australian franking account
- ✗Is not "stapled stock"
If exempt, you generally don't calculate FIF income for these shares, but you still need to declare any dividends received in your NZ tax return.
For the dividend side, use the Foreign Dividend Helper or read the Australian dividends guide.
How to Check
Verifying all the criteria can sometimes be tricky. IRD has developed an online tool to help you check if specific ASX listed shares are likely exempt.
Visit IRD's ASX Exemption ToolRevenue Account Method
Current guidance and Budget 2026 proposal
IR461 includes the Revenue Account Method (RAM) from 1 April 2025 for eligible individuals and family trusts who meet the detailed rules.
Budget 2026 proposes wider RAM access from 1 April 2026: all residents for unlisted foreign shares, and extended RAM for concurrent-tax residents' listed and unlisted foreign shares.
RAM is not an exemption from FIF rules. It is a different calculation method:
- •Dividends and gains on disposal taxed on a realisation basis
- •Gains and losses on disposal reduced by 30% before marginal tax is applied
- •Excess losses carried forward for future RAM gains or RAM dividend income
Other exemptions to check
Besides the de minimis threshold and ASX shares, the FIF rules also generally don't apply to:
Controlled Foreign Companies (CFCs): IR461 excludes an income interest of 10% or more in a controlled foreign company from the definition of a FIF. A CFC generally involves control by New Zealand residents, such as more than 50% control by five or fewer New Zealand residents or 40% or more by one New Zealand resident.
Australian-resident FIFs with 10%+ income interests: IR461 says there is also an exemption for a person with an income interest of 10% or more in an Australian-resident FIF, provided the FIF is subject to tax in Australia and the other detailed conditions are met.
Certain Employee Share Schemes: Specific exemptions can apply to shares acquired under certain overseas employee share schemes.
Venture capital and grey-list investments: Some exemptions exist for certain venture capital situations or companies resident in grey-list countries such as the United States, United Kingdom, Canada, and Japan.
Foreign Exchange Controls: In rare cases where foreign exchange controls completely prevent you from accessing or converting your investment.
Corporate migrations: A 10-year FIF exemption can apply for qualifying New Zealand shareholders when a New Zealand business migrates offshore. Budget 2026 proposes clarifying that the exemption can continue when the business lists on an overseas exchange through different listing methods, including SPAC-style listings, if the other requirements are met.
Important: This is general guidance. FIF treatment depends on your own facts, so check Inland Revenue guidance or speak with a qualified tax professional before filing.