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Determining the amount of FIF income to include in your assessable income

Last updated 14 May 2020

There are three methods for working out taxation for an interest in a FIF and two methods for an interest in a FLP, depending on your access to certain information on the FIF or FLP.

Interest in a FIF

Read Chapter 4: Methods of FIF taxation

  • Most taxpayers liable to tax under the FIF measures will use the market value method.
  • Use the deemed rate of return method if you are unable to establish a market value for your FIF interest and you have not elected to use the calculation method.
  • Use the calculation method if you have access to the financial accounts of the FIF and you are able to determine the FIF's calculated profit or calculated loss.

Interest in a FLP

Read Chapter 5: Foreign life assurance policies (FLPs)

If you have invested in a FLP, you can use:

  • the deemed rate of return method, or
  • the cash surrender method.