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Inland Revenue

Tax Policy

Announcements
PUBLISHED 23 May 2005

Deemed rate of return increases

The deemed rate of return used for taxing foreign investment fund interests has increased from 9.45% to 10.17% for the 2004-05 income year. For more information see the government's media statement.


Hon Dr Michael Cullen
Minister of Revenue

Media Statement

Deemed rate of return up

The deemed rate of return used for taxing foreign investment fund interests has increased from 9.45 per cent to 10.17 per cent for the 2004-05 income year, Revenue Minister Michael Cullen announced today.

The deemed rate of return, which is set annually, applies to all types of investments, including interests in superannuation schemes and life insurance policies. It is based on an average of five-year government stock rates to which a margin of 4 per cent is added.

The new rate was approved by Order in Council today.

Contact: Patricia Herbert, press secretary, 04 471 9412 or 021 270 9013
Email: [email protected]