Your FIF income calculation includes two numbers
These numbers are your total overseas income from your Hatch investments, calculated using the:
fair dividend rate (FDR) method
comparative value (CV) method
You'll use your FIF income calculation to file your tax return
If you have an accountant, you can pass the FIF calculation to them to (hopefully) reduce your bill! Because we've done the calculation for you, they don't have to.
If you don't have an accountant, you have until 7 July 2021 to file your tax return with the IRD. These two fields are relevant to your Hatch tax info:
17A: is in your 2021 Hatch tax report as usual.
17B: Only have overseas income through Hatch? Just choose the lowest of the two calculation methods we've provided (FDR or CV) to put into the 17B field of your individual tax return. Have other overseas investments? Read on.
What if I own shares in Hatch AND on other platforms?
If you own overseas investments outside of Hatch, you’ll need to:
Add up the total income from all your investments using each method (i.e all your investments using the FDR method and all your investments using the CV method)
Choose the lowest total income - this is what you'll add to 17B
Transfer all your other overseas shares to Hatch to keep life simple next year 😉
Confused? Let’s dive into an example:
I received my FDR and CV from Hatch and I asked my accountant to calculate FIF on my other investments outside of Hatch, so I have these income totals.
Total overseas income (FDR method)
Total overseas income (CV method)
I would choose to use the CV method because it is the lowest total overseas income. Therefore my total overseas income (17B in your individual tax return) would be $3,590.19.
Need more info? Read our helpful article on filing your individual tax return.