Join the Kiwis who are hatching their tomorrow and have invested more than $2 billion with Hatch.
Do I need to pay tax on my dividends?
If you earned less than $200 in dividends from your shares through Hatch, you don't have to do anything at tax time. That’s assuming that you haven't earned any other income that the IRD doesn't know about. This could be things like income from self employment or rental income.
If you’re unsure, you might want to check these out:
- I earned more than $200 NZD in untaxed income
- I had more than $50,000 NZD invested overseas this tax year or I invest through a trust
Key takeaways
- You don’t have to file a tax return if you earned less than $200 NZD in untaxed income (this could just be your Hatch dividends).
- You only have to pay tax on your profits if you’re a trader.
No tax today!
As an employee in New Zealand, your tax is already sorted for you through PAYE. So, as long as you haven’t earned any other income that hasn’t been taxed, you don’t need to do anything this year. Nice!
You only need to complete an individual tax return (IR3) if you’ve received more than $200 NZD in things like dividends, rental income or other untaxed income.
What about Kids Accounts?
Your kids are special, but not so special that they’re exempt from the IRD’s tax rules. If your children earned less than $200 NZD, there’s nothing to do at tax time. Otherwise, they may fall into one of these scenarios:
- My child earned more than $200 NZD in untaxed income
- My child had more than $50,000 NZD invested overseas this tax year
Do I have to pay tax on my profits?
According to Inland Revenue’s tax criteria, IRD may tax gains from share sales if:
- You bought shares with the intention of selling them.
- You’re in the business of dealing in shares, meaning regular and organised buying and selling.
- The shares are part of a profit-making scheme.
Read More: Tax on shares: How much tax do you pay on investments?
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
- Talk to a tax professional
We’re not financial advisors and Hatch news is for your information only. However dazzling our writing, none of it is a recommendation to invest in any of the companies or funds mentioned. If you want support before making any investment decisions, consider seeking financial advice from a licensed provider. We’ve done our best to ensure all information is current when we pushed ‘publish’ on this article. And of course, with investing, your money isn’t guaranteed to grow and there’s always a risk you might lose money.
.png)