Sharesies is a New Zealand investing platform, and tax on Sharesies investments is a common area of confusion. The rules differ depending on what you invest in: NZX shares, Australian shares, or US/global shares all have different tax treatment.
NZX shares: dividends are taxable (with imputation credits); capital gains generally not. Australian/US shares: if your total overseas portfolio (at cost) is NZ$50,000 or more, the FIF regime applies — you are taxed on 5% of the portfolio value per year regardless of sales. Under $50,000 overseas: dividends taxable, no tax on capital gains. Sharesies sends you an annual tax statement — check it each year and include relevant figures in your IR3 or automatic assessment.
How Sharesies Tax Works by Investment Type
NZX and ASX Shares
Dividends:
- Taxable at your marginal income tax rate
- NZX dividends carry imputation credits (reducing tax owed)
- RWT at your nominated rate is withheld at source
- Include dividends in your tax return; credits/RWT withheld reduce your liability
Capital gains:
- Generally not taxed for passive investors
- If you buy and sell frequently with intent to profit, gains may be taxable
- Most casual Sharesies investors are not considered “traders”
US and International Shares
Under $50,000 overseas portfolio (at cost):
- Dividends are taxable at your marginal rate
- US withholds 15% withholding tax on dividends (under NZ-US DTA)
- Claim a foreign tax credit for the 15% withheld
- Capital gains not taxed
$50,000 or more overseas portfolio (at cost):
- FIF regime applies
- Under the default Fair Dividend Rate (FDR) method, you are taxed on 5% of the portfolio’s opening market value (1 April) regardless of actual dividends received — you can instead use the Comparative Value (CV) method, based on actual gain, if it produces less tax
- You pay tax even if you made no sales
- Capital gains are not additionally taxed (FIF replaces CGT for this portfolio)
- See FIF Tax NZ for full details
Sharesies Annual Tax Statement
Sharesies provides an annual tax statement each year (usually available in April/May after the tax year ends). It summarises:
- Total dividends received (NZX, ASX, US, other)
- Imputation credits attached to NZX dividends
- RWT withheld on NZX/ASX dividends
- Foreign withholding tax deducted on US dividends
- FIF income calculation (if applicable)
Download this from your Sharesies app (Account → Tax → Tax statement). Use it to complete your IR3 or check against your automatic assessment.
Setting Your PIR Rate on Sharesies Funds
If you invest in Sharesies’ managed funds or ETFs (rather than individual shares), some may be structured as Portfolio Investment Entities (PIEs). For PIE investments:
- Your Prescribed Investor Rate (PIR) applies instead of your marginal tax rate
- Maximum PIR rate is 28% — even if you pay 33% or 39% personal income tax
- This tax savings benefit is significant for higher-income investors
Set your PIR correctly in Sharesies (Account settings → Tax information):
- Under $15,600 (and total income under $53,500): 10.5%
- $15,601–$53,500 (and total income under $78,100): 17.5%
- Over $53,500: 28%
The PIR is based on income from the prior two years, using the lower rate either year gives. For a multi-rate PIE, IRD’s end-of-year PIE calculation squares up a wrong rate: tax overpaid at too high a PIR becomes a PIE credit against your income tax, with any remainder refunded, and a shortfall from too low a PIR is added to your tax bill. The rules are in KiwiSaver PIR rate explained.
Do I Need to File an IR3 for My Sharesies Investments?
PAYE employees with only NZX shares (under $50k): IRD’s automatic assessment often includes dividend and imputation credit data from NZX companies. Check your assessment in myIR — if the figures look correct, confirm and you are done. No IR3 needed.
If you have US/overseas shares under $50k: Your automatic assessment may not include all overseas income. You may need to file an IR3 to declare foreign dividends and claim foreign tax credits.
If you have overseas shares costing $50k or more (FIF): You must file an IR3 each year to calculate and declare FIF income. This is compulsory — IRD does not calculate FIF for you.
The $50,000 FIF Threshold — What Counts
The exemption applies to individuals whose FIF interests cost less than NZ$50,000 in total (IRD: FIF rules exemptions), so the test is the cost (what you paid) of overseas investments:
- All overseas shares combined: US, Australian (ASX-listed, not NZX), European, Asian
- NZX shares and NZX-listed ETFs: do not count toward the threshold
- Australian shares listed only on the ASX: count toward the threshold
- Dual-listed shares (NZX + ASX): may not count — seek advice
Example:
- US shares bought for $30,000 + ASX shares bought for $25,000 = $55,000 total cost → FIF applies
Frequently Asked Questions
I invested $40,000 in US shares via Sharesies. Do FIF rules apply?
No — the $50,000 threshold applies to the cost price of overseas investments. At $40,000 cost, FIF rules do not apply. You declare US dividends as income and claim the 15% US withholding tax as a foreign tax credit. No tax on capital gains.
I reinvested dividends (DRP) — are they still taxable?
Yes. A dividend reinvestment plan (DRP) means you receive shares instead of cash, but the dividend is still taxable income. Include the cash equivalent of shares received in your tax return.
Sharesies has me marked as a “non-PIR” investor. What does that mean?
It means your investment is in individual shares (not a PIE fund). Individual shares are taxed under the normal income tax rules (marginal rates, RWT, FIF), not PIE rules.