4.2 How to check if your profit from the U.S. share sale will be taxable in New Zealand
If you meet either of the following two conditions, there is no need to file your income from the sales of your U.S. shares in New Zealand,
- You are a non-resident taxpayer in New Zealand (See 2.1); or
- You are entitled to a 4-year temporary tax exemption (See 2.5).
If neither of above conditions can be met, you’ll need to work out if your profit from the sales of your U.S. shares would be taxable as follows:
- originally bought the shares for resale or profit-making instead of long-term investment; or
- are in a business of dealing in shares; or
- have a pattern of buying and selling of shares;
- or are classified as a "trader" in shares (See 2.1.1)
If the profits are taxable, you will be taxed under the Foreign Investment Fund rules (See 2.4 and 4.1), or the same rules that apply to New Zealand taxable income depending upon your investments.
Disclaimer: The content of this page is for educational purposes only. It is designed to help you understand the potential tax obligations that may apply to you when investing in financial products. Tiger Broker does not provide any advice, including tax advice, and is not responsible for providing any guidance, opinions, or suggestions about tax for you. If you have any questions about your personal circumstances and tax obligation, we suggest you contact your tax advisor directly for more information.