New Zealand tax information for individuals and couples: Domestic and foreign bank interest, stocks and bonds, dividends, investment funds, ETFs, CIVs, and PIEs.

Abstract

These notes are suitable for university-level students. They provide information on New Zealand taxes for individuals and couples on domestic and foreign bank interest, stocks and bonds, dividends, investment funds, and PIEs. Domestic taxes due on direct and indirect ownership, respectively, of domestic interest-bearing and domestic dividend-bearing investments, respectively, are discussed. Resident withholding taxes (RWT) and prescribed investor rates (PIR) are compared and contrasted. Direct ownership is compared with indirect ownership via funds which might be portfolio investment entities (PIE). Multi-rate PIEs (MRP) are discussed and compared and contrasted with listed PIEs (e.g., NZX Smartshares exchange traded funds [ETFs]). Domestic taxes due on direct and indirect ownership, respectively, of foreign interest-bearing and foreign dividend-bearing investments, respectively, are also discussed. The foreign investment funds (FIF) reporting regime is discussed along with the de minimis hurdle for individual or joint ownership. Collective investment vehicles (CIVs) are discussed. KiwiSaver taxes, KiwiSaver employer superannuation contribution tax (ESCT), KiwiSaver employee contributions, and KiwiSaver employer contributions are discussed. Taxes on domestic and foreign bank accounts, term deposits, term funds, stocks, bonds, Treasury bonds, and mutual funds are discussed. Foreign retirement savings schemes and foreign balance dates are also discussed.