Hon Dr Michael Cullen
Minister of Revenue
MEDIA STATEMENT
Drop in deemed rate of return for foreign investment fund interests
The deemed rate of return for foreign investment fund interests has dropped from 10.46 per cent to 9.90 per cent for the 2002-03 income year, Revenue Minister Michael Cullen announced today.
The foreign investment fund rules tax New Zealand residents on undistributed profits arising in foreign entities in which they have invested but do not control.
The deemed rate of return, which is set annually, applies to all types of investments, including interests in superannuation schemes and life insurance policies. It is based on an average of five-year government stock rates to which a margin of 4 per cent is added.
Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail [email protected]
Hon Dr Michael Cullen
Minister of Revenue
MEDIA STATEMENT
FBT rate for low-interest, job-related loans down
The prescribed rate used to calculate fringe benefit tax for low-interest, employment-related loans has dropped from 7.83 per cent to 7.74 per cent, Revenue Minister Michael Cullen announced today.
The new rate applies from 1 April 2003.
The rate is reviewed regularly to ensure it is in line with the results of the Reserve Bank's regular survey of first mortgage interest rates.
It was last changed with effect from 1 October 2002.
Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail [email protected]