Do you own a foreign company? Are you part of a foreign trust? A foreign investment fund (FIF) is an offshore investment that is a foreign company, foreign unit trust, foreign superannuation scheme or insurer under a foreign life insurance policy. If you personally or your trust has more than $50,000 NZD overseas investments, then the FIF rules apply. Working out your FIF income can be a challenging process and often requires the expertise of an accountant. Long + Cowan can support you if you have any foreign investment funds and need advice on your tax liabilities and disclosing your overseas income.
Long + Cowan will calculate your FIF income on your behalf and ensure that you pay the right amount of tax. There are several ways that FIF income can be calculated, but the two main ones are:
- Fair dividend rate (FDR) method
- Comparative value (CV) method
Our Chartered Accountants will work out your FIF income based on information needed to calculate this. This includes the market value of your investments, share price, the number of shares owned, the exchange rate and any transaction information. It can be quite challenging to have all the information at hand as an investor. Our team will be there to support you through the process every step of the way.