Tax Centre

What do I need to do at tax time for my Hatch investments?

How to make sure tax time is sorted for your overseas investments (spoiler: it’s very straight forward for most of us)

Written by Kristen Lunman
Updated over a week ago

What do I need to do with my Hatch income at tax time?

The process may differ depending on how much you have invested overseas (more or less than $50,000 NZD).

Written by Kristen Lunman
Updated over a week ago

Do I need to pay tax on my dividends?

Your US tax on your Hatch dividends is sorted for you, but you may have to pay tax on your dividends in NZ.

Written by Natalie Ferguson
Updated over a week ago

Do I need to pay tax when I sell my shares?

You may or may not need to pay tax. It depends on your situation and Hatch gives you all the information you need.

Written by Natalie Ferguson
Updated over a week ago

Do I have to file a tax return if I’m under the $200 NZD dividend threshold?

Probably not. If your total untaxed income is under the threshold you likely won’t need to file a tax return.

Written by Henry Jones
Updated over a week ago

Can you tell me how much tax I have to pay?

We would if we could, but we only know about your Hatch investments.

Written by Henry Jones
Updated over a week ago

Do I have to pay tax in the US?

For most Hatch investors US tax is sorted for you.

Written by Henry Jones
Updated over a week ago

What are W-8BEN and W9 tax forms?

Depending on your tax residency, a compulsory W-8BEN or W9 form will be completed on your behalf to ensure you pay the right tax in the US.

Written by Natalie Ferguson
Updated over a week ago

Can I claim a credit on the US tax I've already paid?

In most cases, yes. But there are some catches you should know about.

Written by Henry Jones
Updated over a week ago

What is a Foreign Investment Fund (FIF)?

Foreign Investment Funds (FIF) are types of overseas investments.

Written by Henry Jones
Updated over a week ago

What do I do with my Foreign Investment Funds (FIF) calculation?

How to use Hatch's FIF calculations to complete your NZ tax return

Written by Henry Jones
Updated over a week ago

If I fall under the FIF rules, do I have to include my overseas dividend income separately in my tax return?

No, you won’t need to - it’s included in your Foreign Investment Funds (FIF) income.

Written by Henry Jones
Updated over a week ago

How do I work out what foreign tax credit I’m entitled to if I’m a FIF taxpayer?

If you’re paying FIF tax, working out your tax credits requires info that Hatch doesn’t know, so this guide will help you work it out.

Written by Henry Jones
Updated over a week ago

Can I buy the FIF Report even if the FIF rules don’t apply to me?

You certainly can.

Written by Henry Jones
Updated over a week ago

Does the Hatch FIF report tell me how much tax I have to pay?

No, but it calculates your FIF income, which you can use to easily determine the amount of tax you need to pay.

Written by Henry Jones
Updated over a week ago

How the Hatch FIF report calculates FIF income

A guide to the CV and FDR income calculations

Written by Henry Jones
Updated over a week ago

Understanding FIF transaction types

How we interpret your transaction data when calculating your FIF income

Written by Henry Jones
Updated over a week ago

What is investment cost?

Investment cost is the cost price you paid for your investments

Written by Henry Jones
Updated over a week ago

What’s included in my investment cost?

Your investment cost includes the cost price of the shares you’ve purchased and your available balance.

Written by Henry Jones
Updated over a week ago

Is my investment cost the same as my portfolio value?

No. Your investment cost doesn’t include gains or losses on your investments.

Written by Henry Jones
Updated over a week ago

Does my investment cost include gains or losses on my investments?

Only when you sell your shares.

Written by Henry Jones
Updated over a week ago

Can exchange rate changes cause my investment cost to go over $50,000 NZD?

Yes and no. Changes to the exchange rate won’t impact your investment cost on shares you own, but there are some gotchas.

Written by Henry Jones
Updated over a week ago

Does my investment cost decrease when I withdraw my available balance?

Yes. Your investment cost will be impacted by withdrawals.

Written by Henry Jones
Updated over a week ago

Are Australian shares included in my investment cost or FIF income calculations?

No. Most Australian shares are exempt from the FIF rules, and we exclude all exempt shares.

Written by Henry Jones
Updated over a week ago

How does Hatch calculate my investment cost?

Your investment cost is calculated using end of day exchange rates and your USD investment cost from our broker.

Written by Henry Jones
Updated over a week ago

Does transferring shares to or from Hatch impact my investment cost?

Share transfers may cause your investment cost estimation to be incorrect in Hatch.

Written by Henry Jones
Updated over a week ago

Which exchange rates are used to calculate the NZD value of my investment cost?

We use exchange rates from the European Central Bank.

Written by Henry Jones
Updated over a week ago

How often is my investment cost updated on my current year Tax Reports page?

If you haven’t gone over the $50,000 NZD FIF threshold, your investment cost will be updated every time you refresh the tax report page.

Written by Henry Jones
Updated over a week ago

Why do you only show the peak investment cost when I've gone above the FIF threshold and not before?

We show your current investment cost so you can track how close to the $50,000 NZD threshold you are.

Written by Henry Jones
Updated over a week ago

What types of income aren’t automatically taxed in New Zealand?

Some types of income are not taxed before you receive the money. This income may need to be included in an individual tax return.

Written by Henry Jones
Updated over a week ago

What is a share dealer/trader?

If you’re considered a ‘trader’ instead of an investor, you may have to pay tax on any profits when you sell shares

Written by Henry Jones
Updated over a week ago

What does investing for a profit mean?

If you purchase shares with the intention to sell them at a profit, rather than earning dividend income from holding them

Written by Kristen Lunman
Updated over a week ago

Can I claim a tax credit on American Depositary Receipts (ADRs)?

In most cases, yes. But there are some additional things to consider.

Written by Henry Jones
Updated over a week ago

Understanding your Hatch tax reports: where we get the data from

There are a lot of things we need to take into account when providing tax numbers for you.

Written by Kristen Lunman
Updated over a week ago