23 May 2005

Deemed rate of return up

The deemed rate of return used for taxing foreign investment fund interests has increased from 9.45 per cent to 10.17 per cent for the 2004-05 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.

ENDS

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