Yes, tax is generally applicable on fund investments, and the tax treatment will likely depend on whether the fund is domiciled in New Zealand or offshore.

If a New Zealand domiciled fund is registered with the New Zealand IRD as a portfolio investment entity (PIE), the fund will pay tax on your behalf at your prescribed investor rate (PIR), which you provide to us in your Investor Dashboard. It is up to you to select the correct PIR. If you are unsure of your PIR, please visit this link to determine which rate you should use.

If a New Zealand domiciled fund is not registered with the New Zealand IRD as a PIE, the tax treatment will depend on the nature and legal structure of the fund.

The tax treatment for investments in offshore funds will depend on your personal circumstances and the nature and legal structure of the offshore fund.

We recommend speaking to an accountant to ensure you comply with your tax obligations arising from investing in funds.