Income tax – Using the cost method to determine foreign investment fund (FIF) income

This interpretation statement explains when a New Zealand tax resident investor can choose to apply the cost method to calculate their foreign investment fund (FIF) income on shares held in foreign companies. It includes some examples on when an independent valuation may be required to apply the cost method and how the cost method can be applied.

Tax Information Bulletin - Vol 37 No 4, May 2025

IS 25/12 was amended on 28 August 2025 to fix a typo in first box in the flowchart at page 16.