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.
The Christmas season can create payroll challenges, but understanding the rules can help you stay compliant. Annual Leave: By law, employees are entitled to four weeks of paid leave per year. To avoid last-minute staffing problems, set clear deadlines for leave requests. Holiday Pay : Employees must be paid for public holidays that fall on their regular workdays. Keeping up-to-date employee records and rosters ensures accurate payment. Christmas Closures : Plan ahead for any business shutdowns. You must provide at least 14 days' notice before a closure. If an employee doesn’t have enough leave, they must be paid 8% of their gross earnings since their start date or their last leave entitlement, minus any leave paid in advance if agreed upon. Cashing Up Leave : If it’s part of the agreement or you choose to allow it, employees may cash up to one week of annual leave each year. However, you cannot pressure them into doing so. Casual Workers : Casual employees should receive an additional 8% on top of their earnings instead of accruing leave, and this must be clearly shown on their pay slips. With careful planning, you can keep payroll running smoothly, allowing both you and your team to enjoy a stress-free holiday season. Feel free to reach out if you need any assistance or clarification.
This time of year can be hard on small businesses. With a bit of pre-planning and being proactive, you can set yourself up for a financially stress-free holiday. Talk to us. We can help.
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