Do I pay tax in the US if I sell my shares?
No, you don’t pay US tax on profits from selling shares. You will pay tax on any dividends you receive, but this is sorted for you before they hit your Hatch account!
Do I pay tax in New Zealand if I sell my shares?
It depends on your situation.
I earned less than $200 NZD dividends
You probably won’t need to pay any tax or file an individual tax return for your Hatch investments at all - as long as Inland Revenue (IRD) doesn’t see you as a trader.
I earned more than $200 NZD in untaxed income
You probably will need to pay tax on your dividends and file an individual tax return for your Hatch investments, but you shouldn’t need to pay tax when you sell your shares as long as Inland Revenue (IRD) doesn’t see you as a trader.
I had more than $50,000 NZD invested overseas - FIF and trusts
Yes, it’s necessary as part of your Foreign Investment Fund (FIF) rule obligations.
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:
Help from Hatch partners
If you use Hnry, you can also get FIF reporting as part of their tax services
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.