Most investments in Saxe Coburg’s portfolios are classified as Foreign Investment Funds (FIFs) under NZ tax rules. For these investments, you’ll need to report these to the IRD each year. The tax paid can often be favourable to New Zealand tax payers. 

For FIFs, each year investors typically choose the lower of two calculation methods: 

• Fair Dividend Rate (FDR): Tax is 5% of the opening value (regardless of actual returns). 

• Comparative Value (CV): Tax is based on the actual gain or loss over the year. 

Note, the above does not constitute Tax Advice, please contact us to discuss further or for personalised tax advice, please discuss this with your accountant.