Originally Posted by
JonathanGiles
Perhaps it is my naivety of the NZ stock market, but I would have assumed that most companies don't keep their share price (mostly) static and don't pay out massive dividends (although I do understand NZ does pay out higher dividends that the US, on the whole). If my assumption is right, that would mean share prices do fluctuate (hopefully upwards), and therefore in NZ we have the benefit of not paying any tax on the (paper only) capital gains of the shares - just the dividends. Would it be fair to say that this should lead to lesser tax overall than going purely with FIF?