On 6 June, 2024, the Inland Revenue Department of New Zealand has declared that the deemed rate of return applicable to the taxation of foreign investment fund interests will be 8.63% for the income year of 2023-24, an increase of 0.48% from the previous income year.
The deemed rate of return is set annually and is one of the methods that can be used to calculate income from foreign investment fund interests. The rate is calculated by taking an average of the five-year Government bond rate at the end of each quarter, plus a margin of four percentage points.
The new rate was set by Order in Council on 4 June, 2024, and came into force on 6 June, 2024.
