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LI 2017/178

FIF deemed rate of return set for 2016-17

Order in Council LI 2017/178 sets Foreign Investment Funds deemed rate of return for 2016-17 at 6.28%.

The deemed rate of return for taxing foreign investment fund interests is 6.28% for the 2016-17 income year, down from the previous year's rate of 6.77%.

The deemed rate of return is set annually and is one of the methods that can be used to calculate income from foreign investment fund interests. The rate is based on taking an average of the five-year Government stock rate at the end of each quarter, to which a 4% margin is added.

The new rate was set by Order in Council on 1 August 2017.

Income Tax (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2016-17 Income Year) Order 2017 (LI 2017/178)