Tax time made simple

Not sure whether you need to pay tax on your overseas shares? We’ve got you. Hatch makes it easy for you to understand what you need to do for your situation.

Key takeaways

You’ll need to pay tax on your Hatch investments if you:

• Earned more than $200 NZD in dividends or other income that you haven’t already paid tax on during the tax year (1 April - 31 March)
• Had more than $50,000 NZD invested overseas at any time (including in money market funds)
• Are investing overseas through a trust

Although the end of the tax year is 31 March, tax returns and payments aren’t due until 7 July.

Kids Accounts are taxed separately, but the same rules apply.

Where do I start?

Tax is part of life for any investor. You may have received an Automatic Tax Assessment from the IRD, which takes into account all the tax you’ve already paid. But you still need to tell them about any untaxed income you’ve received, including through your investments with Hatch and in the money market fund, DARXX. This is where your uninvested cash in your Hatch account is held (as an investment) that you can withdraw or use to buy shares when the markets are open.

With Hatch, your US tax is sorted for you, all you need to be clear about is your tax obligations in New Zealand.

Read the three scenarios below to see what you need to do (if anything!). This is for the tax year (1 April - 31 March).

I earned less than $200 NZD in dividends

If you earned less than $200 NZD in dividends from your US shares through Hatch, you don't have to do anything at tax time.

This is assuming that you haven't earned any other money that the IRD doesn't know about. This can include income from self employment or rent. If you have earned money considered as income by the IRD, move to the next scenario.

Learn more

I earned more than $200 NZD in dividends or other untaxed income

Nice work!

Because you earned more than $200 in income that wasn't taxed before you received it (like your dividends through Hatch), you'll have to file a tax return.

Hatch gives you everything you need and we’ll walk you through how to complete it.

Get started

I had more than $50,000 NZD invested overseas this tax year or I invest through a trust

Foreign Investment Fund (FIF) tax rules apply to anyone who invests $50,000 NZD or more overseas at any point during the tax year (1 April to 31 March). This includes if it was only for a few days.

This rule refers to the amount you invested, not the current value of your shares. If you bought $10,000 worth of shares and had substantial returns, you won't fall under the FIF rules.

If you're investing through a trust then FIF rules will apply regardless of how much you have invested.

We'll walk you through how FIF tax works.‍

Get started

I need more help!

We don’t know your individual tax situation but we are happy to point you in the right direction. If you have any questions:

• check out our Help Centre
• contact our friendly support team or
• talk to a tax professional