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