Tax reports for your investment portfolio

Yes. Dividends are considered taxable income in New Zealand and must be reported in your income tax return. The rate at which dividends are taxed, however, depends on a variety of factors such as whether the dividends have imputation credits, whether resident withholding tax (RWT) has been applied, or whether the dividend has been paid by an overseas company. For more detailed information on reporting dividend income in your tax return, please refer to the IRD rules.

Yes. ETF distribution income is considered taxable income in New Zealand and must be reported in your income tax return. ETFs are classified as listed portfolio investment entities (PIEs), and any income received will be taxed at the investor’s Prescribed Investor Rate (PIR). For more information on ETFs and tax, please refer to the IRD rules.

Done manually, calculating taxable income from dividends can be a tedious process, requiring investors to sort through a combination of paper statements and digital statements via multiple share registries. However, Sharesight automates this process by automatically tracking dividends and distributions. Sharesight also makes it easy for investors to calculate the taxable income on their dividends by using Sharesight’s Taxable Income Report. This report displays a portfolio's dividends and interest payments, along with the relevant totals investors need to complete their tax return.

No, there is no capital gains tax payable on investments in New Zealand.

While there is no general capital gains tax in New Zealand, tax on gains may apply to investors trading shares when they purchase investments with the intention to sell them at a profit. In these situations, the investor may be classed as a “trader” by Inland Revenue. Sharesight makes it easy for share traders to calculate their taxable gains with the Traders Tax Report, which provides a summary of the investor’s capital gains and losses, including the option to change the sale allocation as needed. For more detailed information about taxable gains for traders, please refer to IRD rules.

Foreign investment fund (FIF) taxes apply to New Zealand residents with certain offshore investments, such as foreign companies, unit trusts, superannuation schemes or life insurance policies. FIF income is considered taxable income, however there are various exemptions that will affect the specific tax implications for investors, as well as a variety of methods that are used to calculate FIF income. Please refer to the IRD for more information.

While Inland Revenue supplies an online calculator to determine whether you have FIF income, these calculations can be quite complex. For a quick and easy way to calculate FIF income, NZ investors on a Sharesight Expert or Pro plan can run their own FIF Report in just a few clicks.

Sharesight’s Taxable Income Report is designed for investors looking for a complete list of the dividends and interest they earned over the time period of their choice. It is a useful tool for investors who need to prepare their tax return, including investors who invest in foreign markets and need a breakdown of their local and foreign dividend income.