Share investments and tax

5 November 2025

Whether you’ve just started to play around with Sharesies, or are already comfortably managing your share portfolio, you need to be aware of how it affects your tax position and the implications if you sell your shares.

Whether you are just considering purchasing shares or already a confident investor, it is important to understand the variables affecting the taxation of shares in New Zealand:

 

  • what kind of entity are you trading under? Have you acquired shares as an individual (or in a partnership), or as a company or trust?
  • are the shares in a New Zealand enterprise or a foreign company?
  • if the shares are in a foreign company, does the investment fall under the Foreign Investment Fund (FIF) regime or under the rules for a controlled foreign company (CFC)?
  • what amount are you investing?
  • do you have a controlling interest in the company you are investing in?
  • is your main purpose acquiring the shares to sell them again, or as part of a share dealing business?



Ordinary tax rules apply to investors who hold:

 

  • shares in New Zealand companies
  • shares in Australian companies exempt from the FIF rules (broadly, larger ASX listed companies)
  • shares in foreign companies and other attributing interests (that are not exempt) that cost NZ$50,000 or less, where the holder has not opted into the FIF rules
  • foreign shares where the holder has opted into the FIF rules but the total cost of the FIF interests is $10,000 or less, so a de minimis exemption from the FIF rules applies.


Different tax rules may apply to investors with shares in foreign companies that don’t meet these criteria.

 

The rules are complex. Call us to discuss your options, identify the supporting documentation you need to keep, and the tax disclosures required. Depending on your situation, we may also recommend you seek targeted advice from a professional financial advisor.

13 November 2025
Is your digital marketing strategy still fit for purpose? We outline four key elements your business should be using to advertise your brand and engage with new customers.
12 November 2025
When it comes to employee payments, not everything is as straightforward as wages. Allowances, benefits, and lump sums each have their own tax rules — and it’s easy to get caught out.
7 November 2025
Did you know you could be claiming back many of your business expenses? Here’s our guide to claiming expenses and reducing your tax bill as a small business.
SHOW MORE

To discuss all your account matters please call us on 09 438 1001