Rt Hon Sir William Birch
Minister of Finance
& Minister of Revenue
15 July 1999
For Immediate Release
DEEMED RATE OF RETURN FOR FOREIGN INVESTMENT FUND REGIME
The annual deemed rate of return used for the purposes of the foreign
investment fund (FIF) regime has been set by regulation, the Minister of
Finance and Revenue Sir William Birch announced today.
The rate for the 1998-99 income year has been set at 9.82%. The deemed
rate of return for future income years will continue to be set annually.
The FIF regime taxes the income earned by foreign entities on behalf of New
Zealand residents, where the controlled foreign company rules do not apply.
The deemed rate of return method is one of the four methods for calculating FIF
income or loss.
The rate of 9.82% will apply to all types of investments, including
interests in superannuation schemes and life insurance policies.