If you had money invested through Hatch before 31 March 2019, you can find your 2019 tax statement here. Your 2020 tax statement will be available in your Hatch account after 31 March 2020.
In the US
Yes. But the good news is your US withholding tax is deducted before your dividends reach your Hatch account, so you don’t need to lift a finger to sort it. The US withholding tax rate on dividends is usually 15% after you’ve completed a W-8BEN form (which you do as part of signing up to Hatch).
Our US broking partner automatically submits all your required annual US tax reports on your behalf. You will just notice a $0.50 US fee for tax reporting deducted from your account at tax time.
Note: If you’re a tax resident outside New Zealand you’ll need to consider the tax rules for every other country, including double tax agreements. As always, we recommend seeking professional tax advice.
In NZ - Individuals with $50,000 NZD or less invested overseas
Yes. If the cost price of your overseas investments (excluding any investments held in a PIE) total less than $50,000 NZD for the whole tax year, dividends you receive from Hatch are taxable income. Overseas investments include:
- Shares in foreign companies (including those outside of Hatch)
- Units in a foreign unit trust
- Foreign life insurance policy
You’ll receive up to a maximum of a 15% tax credit for the withholding tax you’ll have already paid in the US. We’ll give you the information you need to complete your NZ Income tax return for your Hatch investments.
In NZ - Trusts and individuals with $50,000 NZD or more invested overseas
Yes. If the cost price of your overseas investments (excluding any investments held in a PIE) total over $50,000 NZD, your overseas investments will generally be taxed under the Foreign Investment Fund (FIF) rules and you will not be separately taxed on the dividends you receive. We recommend you chat to your professional tax advisor before investing in Hatch.
For more information, here's a tax blog with more detail.
Note: Your tax obligations will depend on your situation, so we recommend that you seek professional tax advice. These obligations may change over time, it’s your responsibility to keep up to date with changes.