New Zealand's Taxation (Annual Rates for 2026-27, FBT Simplification, Foreign Investment Funds, and Remedial Measures) Bill was introduced to Parliament on 10 September 2026. It lets founders, early investors and key employees keep using the Attributable FIF Income (AFI) method even after their stake is diluted below 10% during capital raises, and lifts the FIF de minimis entry threshold from NZD 50,000 to NZD 100,000. The changes are set to apply from the 2026-27 income year (from 1 April 2026) if enacted.
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NZ tax bill lets founders keep the favourable FIF method after diluting below 10 percent
Why this matters for founders
If you are a NZ-based founder holding shares in an offshore company (or your startup may redomicile), review your FIF position with an accountant now so you can elect the AFI method for 2026-27 and avoid being forced onto the harsher Fair Dividend Rate method after a raise.
Source: Regfollower Tax News
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