Announcements
PUBLISHED 29 August 2013

Foreign Investment Fund Deemed Rate of Return for 2012-13

The deemed rate of return for taxing certain foreign investment fund interests has been set at 6.91% for the 2012–13 income year. For more information see the media statement.


Hon Todd McClay
Minister of Revenue

29 August 2013

Foreign Investment Fund Deemed Rate of Return set for 2012-13

Revenue Minister Todd McClay has announced that the deemed rate of return for taxing certain foreign shares is 6.91% for the 2012–13 income year, down from the previous year’s rate of 7.58%.

The deemed rate of return is set annually and is used to calculate income or losses from certain foreign shares with debt-like properties and for which a market value is not available (such as a fixed-rate share in an unlisted foreign company)

The rate is based on taking an average of the five-year Government bond rate at the end of each quarter, to which a 4% margin is added.

The new rate was set by Order in Council on 26 August 2013.

Media contact: Rob Eaddy 0274 596 200