View Full Version : Tax implications on foreign investments?

22-12-2013, 01:48 PM
I have recently opened an Optionsxpress Australia account which allows me to trade on the US market. I am blown away by the range of products and tools available compared to directbroking and ASB securities (not to mention the lower commission fees).

I am a passive investor and am slowly building up my portfolio and purchasing several low-fee ETFs (from vanguard and others) that track different markets. My final portfolio will include S&P500, US mid cap, US small cap value, Canada large cap, Europe large cap, International small cap value, emerging markets, US REIT, and international bonds. I also hold smartshares ETFs to track the Australia and New Zealand large cap (held directly with smartshares). My total portfolio value at the moment is small at around 15,000 NZD.

I plan on investing quarterly to semi-annually and re-balancing annually to predefined weightings.

What are the tax implications for a New Zealander for capital gains and income on foreign stocks, bonds and REITs. I cannot seem to find any information on this. I signed a resident withholding tax form when I opened my optionsxpress account.

I am in the top tax bracket in New Zealand and am 26 years old. My investment period will be 10 years plus. (Not necessarily for retirement as I already a matched kiwisaver fund and a matched superannuation fund.)

G on
22-12-2013, 02:01 PM
Just go to IRD NZ and read the info on FIF rules. There's plenty there. Plenty of info on this site as well just have to troll for it. Shouldn't be that hard to find tho.