Tax for investing in companies is paid for through Resident Withholding Tax (RWT). We’ll use your answers to fill out a W8-BEN (or W9 form if you’re a US citizen or green card holder) on your behalf. That was part of my job before I retired in electricity trading. This is a … We provide all the RWT and imputation credit info to you in your very own tax statement at the end of each financial year. Other than this, a brokerage fee is supposed to be paid, whenever you wish of buying or selling of the shares in companies. There are 3 companies in the SHARESIES LIMITED corporate family. Example Don’t take tax advice from me; but if you sold a house each year for seven years, say, I would expect IR to look in to it. For example, if a Smartshares’ fund’s returns after fees and tax is 5.79% per annum (as Smartshares’ NZ Top 50 Fund was in the past year), you’d need to invest $518 to earn enough to simply cover that $30. 25% NZ Bond, 37.5% US 500 and 37.5% NZ Top 50. Finally, Sharesies also allows you to invest in a small number of managed funds. For example, if you’re entitled to a $1.00 dividend from a US company, you pay $0.33 to the IRD, and receive the remaining $0.67 (which is displayed in your USD Wallet). We spoke to co-founder & CEO Brooke Anderson to find out more. We keep a record of how much tax needs to be paid (or returned to you) with each calculation and make things easy by making any payment to (or from) the IRD on your behalf. Read more about how tax works at Sharesies. Some countries have tax treaties to avoid taxing you twice on the same investment. This will be deducted (or paid) into your Sharesies Wallet at the beginning of April. Sharesies asked Renae, who is currently a student, to share her story about how she got into… If you live in NZ and you’re an NZ tax resident, you pay a total of 33% tax on dividends and distributions for US investments. This depends on the total amount of order. This will include both your NZ and US tax information. Sharesies makes it easy to start investing—no jargon, no minimum buy-in, and all online. So Sharesies is actually a great tool to build a simple portfolio. You can find this in Sharesies through Settings > Tax Details. Well then ask who you want to Sharesies another $500 Gift card with, well call them, and if they answer they also win! With your US shares, we take a record of your tax information that needs to go to the IRS (Internal Revenue Service) and IRD (Inland Revenue)—and pay it on your behalf. They allow you to invest in large range of funds in once place, and manage your investments through their online portals at anytime of the day or night. Mark Lister from Craigs IP yesterday said that he would be "happy to pause and sit tight at the moment" which is pretty bold statement to say when people put a lot of faith (and $) in what you say. Read about what to do at the end of the tax year. I prefer to invest in shares directly via a discount brokerage like Broking Direct or ASB broking. Distributions are paid quarterly for some funds and six-monthly for others. We’ll ask you a few questions before you get started investing in US shares. Below that it is free. Sharesies will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. fund, less tax, fees and costs, will be paid to you as distributions. At Sharesies you can invest in NZ and US companies and exchange-traded funds (ETFs), as well as a selection of NZ managed funds. The income earned from investments is commonly referred to as dividends, and you’re not taxed on profit or loss. An ETF is like buying a basket of fruit. Our tax system, also supports this baseline assumption that you’re rich if you earn ‘high income’ (a relatively relative statement!). Online investment platform, Sharesies, has been granted an exemption by the Financial Markets Authority (FMA) to provide personalised digital advice to its customers. www.sharesies.nz SPECIAL OFFER TO FOLLOWERS OF THE HAPPY SAVER Get $10 in your Sharesies wallet! Google have made the transfer process from an old device to a new one so much easier than it used to be . The product disclosure statement takes me directly to SmartShares, so these are the same funds that I can and do already access directly. They are not the cheapest in term of cost (they charge $30 annual admin fee) or the lowest investment requirement (Superlife can let you invest by $1). Taxes … You may think we pay a reasonable amount of tax already in NZ, although I suppose the less you earn, the higher you think the tax rate … Tax is calculated when you sell any units, and at the end of the financial year (31 March). Whether IR and the courts will believe you I can’t say. If you fill out an IR3 form, this statement shows all the information you need to provide as well as some handy instructions. For example, if you’re entitled to a $1.00 dividend from a US company, we’ll pay 15% of the dividend in USD to the IRS, and 18% of the dividend in NZD to the IRD. PRIZE • 1 x S500 Sharesies Gift card for yourself • 1 x S500 Sharesies Gift card for your friend (if they answer the phone) OTHER TERMS 1. However, Sharesies (beta) got a fantastic user interface and make investing as easy as shopping online. If this is higher than your income tax rate, you can apply for a tax imputation credit—this can be used to reduce tax payable on other income you’ve received. If you have any questions that haven’t been answered here, please let us know at help@sharesies.co.nz. You’ll be able to see a record of these tax statements in Sharesies through Settings > Tax Details > Tax Statements. through and you win a $500 Sharesies Gift Card 4. Sharesies makes sure your RWT and dividend imputation credits add up to 33%. When you think of your typical investor, a student isn’t the first thing that pops into your mind. On Sharesies one can buy three types of investments: Companies; ETFs; MANAGED FUNDS; Some other things to note: No Range or limit – Sharesies does not have a minimum amount to invest in, so you can choose any amount you want and afford and invest. This will include both your NZ and US tax information. The Sharesies platform’s legal entity is Sharesies Limited.Cash deposits, and investments in non-listed funds are held by custodian Sharesies Nominees Limited, while investments in listed funds and shares are held by NZX owned New Zealand Depository Nominee Limited.You can read more about Sharesies’ custodial arrangements here.. Since Sharesies investors can bypass SmartShares setup fee and initial investment requirement. The NZX50 is back to the level it was in June 2019. Sharesies offers the lowest foreign exchange fees, but depending on the value of the trade, may be the most expensive.For example, a US$2,000 purchase of shares would cost US$10 with Sharesies, US$3 with Hatch (assuming it comprises of less than 300 shares) and is free with Stake. Sharesies will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. With managed funds, the amount of tax you pay is based on the Prescribed Investor Rate (PIR) that you set. In early April each year, we’ll provide a tax statement showing your income for tax purposes for the period ended 31 March. The total tax Sharesies will pay on your behalf for your US shares income is 33%. I assume you mean Sharesies. If you have an address outside of NZ, you won’t be able to claim a tax treaty rate. The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). When you invest in ETFs, the fund manager manages the tax and pays this at a flat rate of 28%. Do you have over $50,000 in overseas shares? For example, if you’re entitled to a $1.00 dividend from a US company, we’ll pay 30% of the dividend to the IRS in USD, 18% of the dividend in NZD to the IRD, and you’ll receive the remaining 52% of the dividend into your USD Wallet. It is not compulsory for the investors to buy whole shares … If you have less than $50,000 NZD invested in overseas shares, you don’t need to worry about this! There is a cost to this though. If you fill out an IR3 form, this statement shows all the information you need to provide as well as some handy instructions. If you hold overseas shares (excluding Australian-listed companies) that cost more than $50,000 NZD in total, then you may be obliged to follow FIF (Foreign Investment Fund) tax rules with the IRD. Sharesies won’t be handling this for you and you should seek tax advice. For example, if you’re entitled to a $1.00 dividend from a US company, we’ll pay 33% of the dividend in NZD to the IRD, and you’ll receive the remaining 67% of the dividend into your USD Wallet. For example, if you’re entitled to a $1.00 dividend from a US company, we’ll pay 33% of the dividend in NZD to the IRD, and you’ll receive the remaining 67% of the dividend into your USD Wallet. IRD number is very important for Sharesies, as through this number Sharesies will pay all your taxes. The Smartshares Australian Financials ETF invests in financial products listed on the ASX and is designed to track the return on the S&P/ASX 200 Financials Ex-A-REIT Index. If you can show that on each occasion that the sold house was your primary residence then you have an iron-clad defence to the brightline test. When you receive dividends in Sharesies, the amount you receive will always have the tax already accounted for. For more information about FIF, check out the IRD website. The $30 yearly sharesies fee is really equivalent to a custodial fee as charged by the traditional brokers. Any distributions will be automatically reinvested as additional units, unless you choose to have the distributions paid out as cash. As a US citizen or green-card holder, you may have other tax obligations to the IRS. Anyone can have an investment portfolio. Sharesies charges a monthly subscription fee if your portfolio is worth more than $50. It provides access to a total of more than 2,300 US companies, and allows you to trade on the NZX as well. Here is a balanced portfolio you can easily build with Sharesies. Sharesies does however provide a very good platform, that is arguably easier to use than its competitors platforms. Do you think the current outlook for the NZ economy is as good right now as it was in June 2019? SHARESIES LIMITED is located in Wellington, WELLINGTON, New Zealand and is part of the Finance & Insurance Sector Industry. For more information, check out our help centre articles. You do need to invest in larger numbers than with Sharesies, but the shares are then registered in your name directly and not via a third party. We pay RWT to the IRD on your behalf regularly. You may be able to claim imputation credits. Sharesies is just giving me another way of buying them with the key feature being the lower barrier to entry, just $5. A low cost way to enter the share market buying into one of their index funds. Sharesies is a great way to find your “investing feet”. These can be grouped by theme, like a colour or a season. Sharesies’ annual fee therefore really erodes its low barriers to entry pitch. If you receive stock options, talk with your tax advisor to determine how these tax rules affect you. Do you mind sharing the shop on eBay where you got Pixel 5 from? You’ll be able to see a record of these tax statements in Sharesies through Settings > Tax Details > Tax Statements. The total tax Sharesies will pay on your US shares income is 48%. The total tax Sharesies will pay on your behalf for your US shares income is 33%. If you sell the shares later, you'll pay 0.50% of the transaction value as a brokerage fee. If the Power of Attorney is a US resident for tax purposes or a US citizen but you, as the applicant, are not a US resident for tax purposes or a US citizen, a W-8 BEN form must be completed in your name and a W-9 must be completed in the name of the Power of Attorney. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. You’ll receive the remaining 67% of the dividend amount in your USD Wallet. The total tax Sharesies will pay on your behalf for your US shares income is 33%. Sharesies: Sharesies lets you buy and sell shares and ETFs on the New York Stock Exchange, the NASDAQ and the Chicago Board Options Exchange. Very satisfied with my Pixel 5 after coming from a 2XL. More info about tax and your Sharesies investments, See more information about how to set your PIR. Sharesies is not low cost for new investors, as can be seen in my investing series that compares the cost of the biggest index funds in NZ. You get all the different types. For orders greater than $3000, the brokerage fee is supposed to be 0.1% of the total … Always make sure your PIR is correct in Settings > Tax Details. Founded by Sonya Williams, Brooke Anderson and Leighton Roberts, Sharesies is an online platform that aims to break down the barriers to investment, giving users access to investment opportunities – regardless of how much they’ve got to invest. Based on your answers and the address you have assigned to your Sharesies account, we’ll assign your tax treaty rate for US shares to you. Stake Sharesies is NZX's second new market participant to join the local exchange in the past year, with Hobson Wealth Management being accredited for cash market trading and clearing in … If this is you, Sharesies can’t handle your tax for you and you should seek tax advice. The tax options depend on what country you’re a citizen or tax resident of. This means if you purchase $500 in shares in one company, you'll pay $2.50 in brokerage fees. At Sharesies, we make things easy by paying income tax on your investments for you. The total tax Sharesies pays on your behalf for your US shares income is 33% —that’s 33% tax to the IRD and no tax to the IRS. Think of it as a portfolio in your pocket. See more information about how to set your PIR. At the end of the tax year, we'll send you a statement to show how much tax you have paid. Sharesies is expensive for beginners Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. I split my $50 high risk funds and made minuscule returns. SHARESIES LIMITED has 5 employees at this location and generates $334,310 in sales (USD). See … Both InvestNow and Sharesies are fund platforms. If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. I will use US 500 ETF, NZ Top 50 ETF and NZ Bond ETF to build a portfolio. Surprised there were no holdups at customs or taxes/duty to be paid (I certainly didn't pay for any GST at the eBay end). Read my statement yesterday 6 month period to 30th September up 10.97% It's been quietly successful this slow and long term share investment I couldn't be a wheeler dealer type I could be, but I won't be. "The vision for Sharesies is to make the same opportunities available, regardless of how much money you've got. 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