The New Zealand tax authority has set the deemed rate of return for foreign investment funds at 7.84% for the 2025–26 income year, down from 8.04% the previous year.  

RF Report

New Zealand Inland Revenue has issued a determination on 29 April 2026, which sets the deemed rate of return, used to calculate foreign investment fund income under the deemed rate of return calculation method, for the 2025-26 income year at 7.84%. The deemed rate of return set for the 2024-25 income year was 8.04%.

The determination, formally titled the Tax Administration (Deemed Rate of Return on Attributing Interests in Foreign Investment Funds, 2025–26 Income Year) Determination 2026, was made in Christchurch on 23 April 2026 and came into force on 30 April 2026.

The deemed rate of return is used to calculate foreign investment fund income under the deemed rate of return calculation method set out in section EX 55 of the Income Tax Act 2007. Specifically, the rate applies for the purposes of sections EX 55(4)(b) and EX 55(6)(c) of that Act.

The rate of 7.84% for the 2025–26 income year is a decrease from the 8.04% that applied in the 2024–25 income year.