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Inland Revenue

Tax Policy

Announcements
PUBLISHED 2 August 2004

Deemed rate of return down

The deemed rate of return used for taxing foreign investment fund interests has dropped from 9.90% to 9.45% for the 2003-04 income year. For more information see the government's media statement.


Hon Dr Michael Cullen
Minister of Revenue

MEDIA STATEMENT

New deemed rate of return for foreign investment fund interests

The deemed rate of return used for taxing foreign investment fund interests has dropped from 9.90 per cent to 9.45 per cent for the 2003-04 income year, Revenue Minister Michael Cullen announced today.

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.

The new rate was approved by Order in Council today.

Contact: Patricia Herbert [press secretary] 04-471-9412 or 021-270-9013. E-mail: [email protected]