FIF deemed rate of return set for 2010-11

Revenue Minister Peter Dunne has announced that the deemed rate of return for taxing foreign investment fund interests has been set at 8.52% for the 2010–11 income year, down from 9.12% for the previous income year.

The deemed rate is set annually and is one of the methods that can be used to calculate income from foreign investment fund interests.

The rate is based on an average of the five-year Government stock rate at the end of each quarter, to which a 4% margin is added.

The rate was set by Order in Council yesterday.