Investment Tools Taxation
Taxation of Managed Investment Funds and
Other Investments Available through the MoneyOnline Website
PLEASE NOTE: Taxation rules for NZ residents investing in managed funds (unit trusts, group investment funds, super schemes, listed trusts and some NZX and ASX listed companies and for offshore portfolio investments changed as at 1st April 2007.
This page will be updated in due course. A comprehensive investment tax update pack is available in hard copy from our sister company, Equity Investment Advisers & Share brokers Ltd. This can be requested by emailing us via the link below. Your full name and postal address, phone number and email address is required to receive this pack free of charge.
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The personal taxation system in New Zealand is supposed to be one of the simplest in the OECD but when it comes to investment funds life becomes more complicated. Claims of ‘taxation by stealth’ are not entirely without foundation.
A key objective of these few pages is to give both New Zealand investors (and overseas residents) contemplating investment through MoneyOnline enough information so that decisions can be effective from a tax perspective. It is not intended to cover every aspect of taxation applicable to managed or other investments and we also warn that selection of investments should not be made on the basis of taxation alone. Tax laws change frequently and what seemed to be a good deal this year may not be so attractive next. This guide will apply to most personal tax payers in New Zealand.
It is also important the readers distinguish between investors as taxpayers and investments which are taxpayers. ie. different tax paying entities.
Eg: Companies (shares) and NZ unit trust investment are taxpaying entities and can issue credits for the tax they have paid (imputation credits) when they pay dividends (distributions).
Finance company investments are not tax paying entities. They can deduct tax from interest paid to investors (withholding tax).
The guide may also be useful for overseas personal investors wanting to understand how the New Zealand tax system might affect investment decisions for NZ domiciled offers and Australian based offers that are registered for promotion in New Zealand.
Also note that Investment Statements and Prospectuses registered in New Zealand are not to be sent or given to any person outside New Zealand in any other jurisdiction in circumstances in which the offer of shares or distribution or use of the investment statement or prospectus would be unlawful.
As always there are some exceptions that will be beyond the scope of this document. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE.
If taxation leave you cold - and it can be pretty boring stuff, then get yourself a decent adviser and pay a fair price for the advice. If not - then read on. You could save yourself a bundle. And please read our disclaimer first.