What is FIF (Foreign Investment Fund)?
The Foreign Investment Fund regime is the IRD framework that taxes New Zealand investors on certain offshore equity holdings.
Detailed Explanation
Inside a KiwiSaver scheme, FIF calculations are handled by the provider as part of the scheme's PIE return — members do not file FIF separately for KiwiSaver holdings. FIF can apply to direct overseas share investments held outside KiwiSaver once the offshore portfolio cost exceeds NZ$50,000.
Example
A KiwiSaver scheme growth fund holding NZ$100m of US shares calculates FIF income at the fund level; you see only the net result reflected in your unit price.
Frequently Asked Questions
Does FIF apply to me as a KiwiSaver member?
Not for your KiwiSaver holdings — the provider handles it. It can apply to direct overseas shares you own personally.