Risk, returns & timeframes illustration
3 min read
August 17, 2022
by

Tax time made simple

Tax time doesn’t have to be taxing. Not sure whether you need to pay tax on your overseas shares? We’ve got you. Hatch makes it easy for you to understand what you need to do for your situation.
Tax time
3 min read
August 17, 2022
by

Tax time made simple

Tax time doesn’t have to be taxing. Not sure whether you need to pay tax on your overseas shares? We’ve got you. Hatch makes it easy for you to understand what you need to do for your situation.
3 min read
August 17, 2022
by

Tax time made simple

Tax time doesn’t have to be taxing. Not sure whether you need to pay tax on your overseas shares? We’ve got you. Hatch makes it easy for you to understand what you need to do for your situation.
Table of contents
Getting Started Investing course
Free Getting Started Course
Take your first, or next, step to becoming a confident investor with Hatch's free online course – just 10 minutes a day, for 10 days.

Not sure whether you need to pay tax on your overseas shares? We’ve got you. Hatch makes it easy for you to understand what you need to do for your situation.

Key takeaways

You’ll need to pay tax on your Hatch investments if you:

  • Earned more than $200 NZD in dividends or other income that you haven’t already paid tax on during the tax year (1 April - 31 March)
  • Had more than $50,000 NZD invested overseas at any time (including in money market funds)
  • Are investing overseas through a trust

Although the end of the tax year is 31 March, tax returns and payments aren’t due until 7 July.

Kids Accounts are taxed separately, but the same rules apply.

Where do I start?

Tax is part of life for any investor. You may have received an Automatic Tax Assessment from the IRD, which takes into account all the tax you’ve already paid. But you still need to tell them about any untaxed income you’ve received, including through your investments with Hatch and in the money market fund. This is where your uninvested cash in your Hatch account is held (as an investment) that you can withdraw or use to buy shares when the markets are open.

With Hatch, your US tax is sorted for you, all you need to be clear about is your tax obligations in New Zealand.

Read the three scenarios below to see what you need to do (if anything!). This is for the tax year (1 April - 31 March).

I earned less than $200 NZD in dividends

If you earned less than $200 NZD in dividends from your US shares through Hatch, you don't have to do anything at tax time.

This is assuming that you haven't earned any other money that the IRD doesn't know about. This can include income from self employment or rent. If you have earned money considered as income by the IRD, move to the next scenario.

Learn more about tax when you have earned less than $200 NZD in dividends

I earned more than $200 NZD in dividends or other untaxed income

Nice work!

Because you earned more than $200 in income that wasn't taxed before you received it (like your dividends through Hatch), you'll have to file a tax return.

Hatch gives you everything you need and we’ll walk you through how to complete it.

Earned more than $200? Learn more

I had more than $50,000 NZD invested overseas this tax year or I invest through a trust

Foreign Investment Fund (FIF) tax rules apply to anyone who invests $50,000 NZD or more overseas at any point during the tax year (1 April to 31 March). This includes if it was only for a few days.

This rule refers to the amount you invested, not the current value of your shares. If you bought $10,000 worth of shares and had substantial returns, you won't fall under the FIF rules.

If you're investing through a trust then FIF rules will apply regardless of how much you have invested.

We'll walk you through how FIF tax works.

Get started: Learn more about FIF tax

I need more help!

We don’t know your individual tax situation but we are happy to point you in the right direction. If you have any questions:

We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.

Join the Kiwis who are hatching their tomorrow and have invested more than $1 billion with Hatch.

Explore another series
Tax
Money
Economy
Investing

More recent news articles

Recent learn articles

7 min read
Oct 11, 2024

The NZX 50: New Zealand’s main stock market index

The NZX is New Zealand’s stock exchange with a rich 150 year history. Today its benchmark index the NZX 50, is considered by some as being less volatile than the ASX 200, and possibly lower risk than the S&P 500. Discover more about Te Paehoko o Aotearoa.
Read more
3 min read
Sep 26, 2024

How to build financial wellbeing starting with a money buffer

Financial wellbeing is wellbeing, and small steps today can help you reach your goals faster and reduce stress along the way. Here are 5 simple steps to help get your money working smarter and take the worry away.
Read more
3 min read
Aug 29, 2024

Warren Buffett quotes: Lessons on investing from the Oracle of Omaha

At 94 years young, famous US investor Warren Buffett has learned a few painful billion dollar lessons along the way. But the man famous for enjoying McDonald’s for brekkie and Dairy Queen on Sunday is still not afraid to fail.
Read more

Related news articles

More recent learn articles

9 min read
Apr 8, 2024

Tax on shares: How much tax do you pay on investments

Are you looking to invest but unsure what it means for your tax obligations? Learn more about tax on share trading in NZ, as well as how much tax you pay on investments, and when you may need to pay it.
Read more
8 min read
Aug 17, 2022

FIF tax rules for individuals and trusts: $50,000 NZD or more invested overseas

NZ FIF tax rules apply to investors who invested more than $50,000 NZD in Foreign Investment Funds (FIFs) at any point in the last tax year. This article, along with the data in your Hatch tax report, will give you everything you need to know about what you need to do at tax time.
Read more
3 min read
Aug 17, 2022

I earned more than $200 NZD in untaxed income

Because you earned more than $200 in income that wasn't taxed before you received it (like your dividends through Hatch), you'll have to file a tax return. Hatch gives you everything you need and we'll walk you through how to fill it out.
Read more

Recent news articles

More recent learn articles

7 min read
Oct 11, 2024

The NZX 50: New Zealand’s main stock market index

The NZX is New Zealand’s stock exchange with a rich 150 year history. Today its benchmark index the NZX 50, is considered by some as being less volatile than the ASX 200, and possibly lower risk than the S&P 500. Discover more about Te Paehoko o Aotearoa.
Read more
3 min read
Sep 26, 2024

How to build financial wellbeing starting with a money buffer

Financial wellbeing is wellbeing, and small steps today can help you reach your goals faster and reduce stress along the way. Here are 5 simple steps to help get your money working smarter and take the worry away.
Read more
3 min read
Aug 29, 2024

Warren Buffett quotes: Lessons on investing from the Oracle of Omaha

At 94 years young, famous US investor Warren Buffett has learned a few painful billion dollar lessons along the way. But the man famous for enjoying McDonald’s for brekkie and Dairy Queen on Sunday is still not afraid to fail.
Read more