When it comes to investing, we’re seeking to get a GULP.
GULP stands for ‘Growth at an Unbelievably Low Price.’
Well, when you do manage to achieve that growth over time with the right business, there’s also another important consideration.
Tax is omnipresent. Source: Image generated by Freepik AI
New Zealand, amongst a handful of economically desirable countries, has no capital-gains tax (CGT). Generally, if you’re holding your stocks and shares for longer-term growth, you won’t pay tax on their capital growth.
In Australia, by comparison, you will pay CGT.
If you’ve held the stocks for more than a year, this tax may be discounted by 50%.
For global investors, New Zealand does have a peculiar tax regime. It’s called FIF (Foreign Investment Funds). This is not a capital-gains tax, but it may have some advantages depending on the types of shares you buy.
I was recently in Italy looking at some of our listed investments there. One business is projected to pay a dividend of over 10% next year.
In this special edition for premium subscribers, I will be looking at:
- An update on this high-yield business and how FIF may apply to it.
- A full guide on FIF Tax on global shares for New Zealand residents. The upside. The downside. And how to calculate your FIF with templates…
Your first Quantum Wealth Report is waiting for you:
