Hon Dr Michael Cullen
Minister of Revenue
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]