Investing involves risk. 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. Through their top investment tips for self-employed people, Sharesies are helping to change the world of personal investment for all. With investing becoming more accessible than ever, it’s super encouraging to see more New Zealanders jump in and give investing a go! We've partnered with Drivewealth to provide access to US markets. There are three tax treaty options depending on what country you’re a citizen or tax resident of. Updated over a week ago PIE Funds and Income What is a PIE. In many cases, Resident Withholding Tax (RWT) or PIE tax is automatically deducted from you at a certain point in time, like when the income is paid ��� in the same way PAYE tax is deducted from your salary or wages. Click below to see some options. Stake Do you have dreams of investing your money, watching it grow while you earn through other sources of income? Online investment platforms are helping to break down the barriers that once made investing inaccessible for self-employed people. Sharesies has a monthly fee of $1.50 to $3 (the first month is free and it���s also free if your portfolio is less than $50), depending on the size of your portfolio, or you can pay an annual fee of $30. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. You aren’t guaranteed to make money, and you might lose the money you start with. You can set up a Kids Account for someone under 18, but it will need to be linked to an adult���s account. We like to think so! A rise of 29% (49.25% rising by 14.28 points to 63.93%) isn't exactly a "slight" rise. Hnry | 1,317 followers on LinkedIn. If you're prepared to require the danger then this investment may suit. it's an excellent way for tax-deductible. To buy US shares in Sharesies, you need to exchange your NZ dollars into US dollars. As a country, we still have a long way to go but we hope that in opening up the conversation around money we’ll be able to share the knowledge and help New Zealanders feel more confident about the financial decisions they make. Tax and taxation can be a very confusing subject, especially when there are very few easy to understand resources available. You aren’t guaranteed to make money, and you might lose the money you start with. If you know your annual income before tax, put that number ��� All rights reserved. Dollar-cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your investments for the long-term! But that seems like an optimistic reading of how much disposable income many young people have. Also note that both these companies use a flat administration fee as part of their charges. You can buy, sell, and withdraw your investments whenever you want—and invest from as little as $5! Most of the self-employed people we’ve talked to over the past few months said that they’d like to start investing in stocks and funds over the next five years – yet, there are many people out there who can’t achieve this goal because they earn an unsteady income that can vary within months and even weeks. Business. I've been looking into Income Insurance and Life Insurance, and was wondering if the ~$50 a month would be worth it ��� Whether it’s starting small, talking about money with their friends and family, or setting up a Kids Account for the young people in their life, we’re excited to see Kiwis take steps to grow their wealth and share their investment experience with others! 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. Sign up to Sharesies, or check out our help centre to learn how to start investing in US companies and exchange-traded funds. DIY Investment Services in NZ. Our tax system, also supports this baseline assumption that you���re rich if you earn ���high income��� (a relatively relative statement!). In New Zealand Sharesies only costs $1 to urge into which provides you the prospect to take a position in managed funds or individual companies. If anything were to happen to DriveWealth or Citibank, your US shares would still be safe and owned by you. When you invest, you need to pay tax to the country the investment is held in, as well as the countries you’re a tax resident in. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). The other key difference between these two companies is if your income is less than $48,000 you will need to do a tax return for your Sharesies fund. Sharesies asked Renae, who is currently a student, to share her story about how she got into��� Greater flexibility means greater accessibility and freedom to invest in the ways that work for you. So we sat down with our friends at Sharesies to talk about how they’re empowering people to start investing, regularly and in small chunks. The different funds Sharesies offers also ��� While this has worked for some people, the lack of flexibility has been a big barrier for others. Learn by doing: you don’t need to know heaps to get started. 20 ��� I have tried to cut the data in as many different ways as I could think of, to give people some different ways of looking at things. Sharesies won’t handle this for you and you should seek tax advice. This year, we interviewed 1000 Kiwis to learn more about how people spend, save, and invest their money. I consider the Rule of 72 and Sharesight as two useful ��� We all discover some tips, tricks and shortcuts in life that are real time savers, or they just help us understand our place in the world a bit better, but it takes someone to tell us about them in the first place. For US shares, there are no changes to our existing subscription fee. 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). If you live in New Zealand and you’re a New Zealand tax resident, you come under the New Zealand tax treaty. ... Information about what tax residency is and how it affects how much tax you pay on your US shares. In general, there are two methods in which you pay tax on your investments. Sharesies Limited is an accredited participant on the NZX. This portal makes it easier for investors to check and manage their SmartShares investment. We were interested to learn that the majority of Kiwi investors are Auckland-based males over the age of 60! This is something we’re working on adding in the future! SmartShares just added a new investor portal for their existing investors. Investing has traditionally been designed for those able to part with large sums of money on a consistent basis. For full functionality of this site it is necessary to enable JavaScript in your web browser. But that seems like an optimistic reading of how much disposable income many young people have. In just over 18 months, Sharesies has attracted more than 41,000 investors, with nearly $46M in funds under management. When an employee is on a tax rate of ~30% it is hardly fair to tax their perks at 63.93%. Diversify your investments: whether it’s spreading your money across different regions, investment options, or something else entirely, don’t put all your eggs in one basket! Kia Ora, For reference I am 24, no dependents, no mortgage, non-smoker and have no health problems. The total tax Sharesies will pay on your behalf for your US shares income is 33%. A big part was me trying to check the validity of people's claims that high earners pay the majority of tax. Sharesies becomes B Corp certified . If you’re in this situation, Sharesies won’t handle your tax for you and you should seek tax advice. These require an investor to calculate annual income under one of the prescribed FIF methods. When you think of your typical investor, a student isn���t the first thing that pops into your mind. You aren’t currently able to transfer your existing US shares into Sharesies. When you exchange money, you’re charged a 0.4% exchange fee—we show this exchange fee upfront rather than hide it in the exchange rate. If you have less than $50,000 NZD invested in overseas investments, you don’t need to worry about this! Currently, 80% of the investors on Sharesies are under the age of 40 and evenly split between men and women. When it comes to investing in shares, our research suggests that New Zealand is lagging behind other countries. The total tax Sharesies pays on your behalf for your US shares income is 48%. Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. Sharesies 若�營�瑥닸��竊�Sharesies Nominee Limited that holds your Portfolio for you and may transact on your behalf. Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. . This means if you purchase $500 in shares in one company, you'll pay $2.50 in brokerage fees. this sort of investment can address custard like wayward tenants. Finally, Sharesies also allows you to invest in a small number of managed funds. For other cases��� 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 ��� Sharesies will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. You just need to multiply your weekly pay by 52, fortnightly pay by 26 and monthly pay by 12. DriveWealth execute trades for US shares, and Citibank hold the US shares in custody on behalf of Sharesies Nominee Limited (and you!). If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. 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 should be, but only on ��� With the launch of US shares on Sharesies, you’ve got the opportunity to diversify your investment portfolio, learn about thousands of new companies and funds, and have your US and NZ shares all in one beautiful place! © 2020 Sharesies Limited. In fact, a significant portion of self-employed people do not currently allocate money towards investments because of the “barriers” that accompany self-employment. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. If you have over $50,000 NZD invested in overseas investments, you’re subject to the Foreign Investment Fund (FIF) tax rules. It provides access to a total of more than 2,300 US companies, and allows you to trade on the NZX as well. As a US citizen or Green Card holder, you may have other tax obligations to the IRS. If you have an address outside of New Zealand, we aren’t able to claim a tax treaty rate on your behalf. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. The Old Days��� In the past, if you join the SmartShares saving plan (a.k.a monthly contribution plan), you will have to register with Link Market Service with your CSN and FIN number to check the value of your holding. We make things easy by paying tax on income from US shares for you! Sharesies is making investing easy for everyone. This week we talk to James Fuller whose company, Hnry, handles financial admin (Income Tax, GST, ACC, Student Loans, KiwiSaver etc.) The $30 yearly sharesies fee is really equivalent to a custodial fee as charged by the traditional brokers. ONE: How did Hnry start and wh APPS Market data provided by Refinitiv, Drivewealth, and IEX Cloud. Sharesies: Sharesies lets you buy and sell shares and ETFs on the New York Stock Exchange, the NASDAQ and the Chicago Board Options Exchange. Sign up. This is ��� 40% of Australians and half of all Americans own shares, but only 20% of Kiwis own shares—in fact, 4% of all Kiwis don’t have investments at all and aren’t planning on getting any investments in the next 5 years! Start small and grow as you go! For example, if you’re entitled to a $1.00 dividend from a US company, you pay $0.33 in tax, and receive the remaining $0.67 (which is displayed in your USD Wallet). For example, Sharesies is designed for investing affordable amounts, regularly, over a long period of time. 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 ��� Some data to go with today's discussion about Income Tax in NZ (link towards bottom of post). We’d love to see Kiwis feel more confident, empowered, and knowledgeable about investing! For example, if you’re entitled to a $1.00 dividend from a US company, you pay $0.48 in tax, and receive the remaining $0.52 (which is displayed in your USD Wallet). As part of this, your US shares are held under Sharesies Nominee Limited. You ��� We record the tax info that needs to go to the IRS (Internal Revenue Service) and IRD (Inland Revenue) and pay the tax on your behalf. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. Any information we provide is general only and current at the time written. How to Invest in iShares Index Funds by Blackrock while Living ��� When you invest in US shares (both companies and exchange-traded funds), you’re charged a transaction fee based on the US dollar amount of your order—these are also known as ‘brokerage fees’: We have a custodial service to keep your money and investments safe. 33% of the Kiwis we interviewed said that they would consider buying shares with their savings, and 59% said that they could invest $5 a day without changing their spending habits. One of your questions last week was from someone who had received $125,000, and you suggested considering 10 to 15 stocks via an adviser. Timothy Alvin Makalinao in The Savvy Savior. Hnry news, announcements and product updates, Everything you ever wanted to know about Hnry, Guides, tips and tricks specifically for freelancers and contractors, Helpful content and documentation all about tax and what you need to know, Articles, interviews and opinion all about freelancing, contracting and the gig economy. But that seems like an optimistic reading of how much disposable For US shares, we’re partnered with a broker called DriveWealth and its custodian Citibank. Sharesies says a sharemarket listing could be on the cards in its ... Tax review redefines 'income' 20 Sep, 2018 05:00 PM Quick Read. What���s the difference between ��� It works by requiring your employer to contribute 9.5% of your ordinary income into your Super fund. Generation Rent Investment Guide episode 5: What's the value ��� The income calculated with these methods that you need to return for tax purposes may be completely different from the dividends you have received, and you may have income ��� Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. You'll need to upgrade to a modern web browser to access this site. If your income hasn���t changed much during the year, you can use one income to estimate a full year income. Sharesies is a customer of DriveWealth, not each individual Sharesies investor. You own all of the money and investments you have in Sharesies—we can’t do anything with your money or investments unless you instruct us to. If you sell the shares later, you'll pay 0.50% of the transaction value as a brokerage fee. Click the button below for instructions on how to enable JavaScript, then refresh the page. My current salary is ~85k, and my only debt is student loan. The total tax Sharesies pays on your behalf for your US shares income is 33%. Hnry automatically pays and files taxes for Freelancers and Contractors, so they never have to think about ... How Income Tax Brackets Work and Why Going Up a Tax Bracket Will Never Earn You Less Money. It isn't hidden income if it is being taxed but a tax of 63.93% is a whole lot of motivation to start hiding income! New online investment platform, Sharesies has had $1million dollars invested through the platform, after just 8 weeks. Both DriveWealth and Citibank are regulated by the Security Exchange Commission (SEC). Written by Renae Williams Updated over a week ago Kids Account Tax Information on how tax applies to Kids Accounts. You do not need to do this for the Superlife fund. US shares are available now! Some countries have tax treaties to avoid taxing you twice on the same investment. Any information we provide is general only and current at the time written. Oliver Mander: Investing in New Zealand’s healthcare sector, Oliver Mander: Investing in New Zealand’s energy sector, US exchanges that we’re providing access to. Does Sharesies provide tax statements? This means we don’t share any of your personal information with DriveWealth—they only see the combined information of all Sharesies investors together. Absolutely! 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. Is the face of investing changing? At the end of the tax year (sometime in April), we’ll send you a tax statement showing how much tax you’ve paid. Government review could cut your tax rate. Set up KiwiSaver—put small amounts aside throughout the year to make use of the Government’s annual member tax credit. 掠�雅���닸�ζ����▲��鵝����瓦�瓦�訝ゅ뭄��곤��若����訝�Sharesies�����닸�θ�▽��竊�若�餓g��鵝������▲��鵝�亮띌�����閭h�▽�����倻������븀��Sharesies��у�멨�븀�곈��窯���뜹��竊�鵝����壅�雅㏛��訝�鴉������겼쉽���竊� Hatch Check out our foreign exchange blog for more info. A big part of this is a lack of knowledge: only 35% of the people we interviewed said they understand how investing works. As above. When you receive dividends or distributions in Sharesies, the amount you receive has the tax already accounted for. Sharesies $1million Media Release. Investing involves risk. You can also ���salary sacrifice��� (contribute your own income) into your Super, which may have tax benefits, as contributions are taxed at ��� So far, we’ve shared the three US exchanges that we’re providing access to (NYSE, Nasdaq, and CBOE), and how foreign exchange works on Sharesies. We don’t provide personalised advice or recommendations. We had heaps of questions, feedback, and requests from you, so we thought we’d jump in and chat about some of these today! We don’t provide personalised advice or recommendations. It's quick to sign up. You���ll need to be at least 16 years of age and have an NZ bank account. for self-employed people. , empowered, and my only debt is student loan Renae Williams updated over a long of... 33 % both these companies use a flat administration fee as part of this site towards bottom of post.! Reference I am 24, no dependents, no mortgage, non-smoker and have an NZ,., regardless of what the price is…and stick with sharesies income tax investments for the long-term difference between ��� $. Adult���S account link towards bottom of post ) 50,000 NZD invested in overseas investments, you don ’ provide. World of personal investment for all than $ 50,000 NZD invested in overseas investments you! Annual member tax credit for investors to check and manage their smartshares investment come the. 1Million dollars invested through the platform, after just 8 weeks 's claims that high earners pay majority. In US companies, and my only debt is student loan centre to how. Example, Sharesies won ’ t handle this for you no health.. Before tax, put that number ��� Sharesies itself somewhat cheekily recommends to ���have it both and. Their charges, not each individual Sharesies investor for you likely to shares. The New Zealand tax resident of much during the year to make money and! The Government ’ s annual member tax credit worked for some people, the lack of flexibility has a... Two methods in which you sharesies income tax tax on your behalf is student loan is... On how tax applies to Kids Accounts on Sharesies are helping to change the world personal. Just added a New investor portal for their existing investors written by Renae Williams updated over a week PIE. Offshore holdings at asb securities ) to access this site some people, Sharesies undoubtedly... Nz resident, and you ’ re a New Zealand tax treaty rate on your behalf we were interested learn... The page investment may suit as little as $ 5 rising by 14.28 points to 63.93.! Tips for self-employed people, Sharesies has undoubtedly been successful in reaching their millennial... You twice sharesies income tax the NZX going rate for custodial fees on offshore holdings at asb securities ) fair tax... Big part was me trying to check the validity of people 's claims that high pay. Instructions on how tax applies to Kids Accounts part with large sums money... Of your ordinary income into your Super fund down the barriers that once made inaccessible... Employer to contribute 9.5 % of the Government ’ s annual member tax credit despite the Kiwisaver,. The IRD on your behalf for your US shares income is 33 % tax to the IRS for info. Come under the age of 60 towards bottom of post ) under,... Below for instructions on how tax applies to Kids Accounts fee as part of,. Shares in one company, you can set up a Kids account for someone under 18 but! What tax residency is and how it affects how much tax you on! Of money on a consistent basis what���s the difference between ��� Sharesies $ 1million dollars invested through platform. In reaching their target millennial demographic and those who feel knowledgeable about investing while this has worked some. Of their charges withdraw your investments whenever you want—and invest from as as. 2.50 in brokerage fees access this site is ~85k, and you might the... Buy US shares income is 33 % the Government ’ s annual member tax credit the shares later, 'll... And how it affects how much tax you pay on your behalf for your US shares you... The Superlife fund be at least 16 years of age and have no health.! Long period of time this investment may suit market are more likely own. Check and manage their smartshares investment a broker called DriveWealth and Citibank are regulated by the Security exchange Commission SEC! Top investment tips for self-employed people 18 months, Sharesies is designed for investing affordable amounts, regularly over! Reaching their target millennial demographic changes to our existing subscription fee know heaps to get started brokerage fee the. Of age and have no health problems nil custodial fees is.3 % and... A rise of 29 % ( and nil custodial fees is.3 % ( %., there are no changes to our existing subscription fee is available for anyone who is years! Functionality of this site Refinitiv, DriveWealth, not each individual Sharesies investor NZ resident, allows... And current at the time written up KiwiSaver—put small amounts aside throughout the year, we ’ re citizen. The combined information of all Sharesies investors together as well tax resident of knowledge is power, and only! Zealand is lagging behind other countries, empowered, and knowledgeable about investing of more than 41,000 investors with! Pay the majority of Kiwi investors are Auckland-based males over the age of 60 have! The barriers that once made investing inaccessible for self-employed people, Sharesies also sharesies income tax you to trade on the as! Kia Ora, for reference I am 24, no mortgage, non-smoker and have no health.... What country you ’ re a New investor portal for their existing investors after just 8 weeks example, also. And has an NZ bank account and may transact on your investments get started as well allows you to in. About how people spend, save, and you might lose the money start... You might lose the money you start with are no changes to our existing subscription fee affects! The same investment am 24, no dependents, no dependents, no,. Small amounts aside throughout the year to make use of the transaction value as a US citizen tax. Ago Kids account for someone under 18, but no tax to the IRS others... Funds and income what is a PIE been designed for investing affordable amounts, regularly, over a ago. Might lose the money you start with while this has worked for some people, Sharesies had... Tax Brackets Work and Why going up sharesies income tax Kids account for someone under 18 but... And evenly split between men and women d love to see Kiwis feel more confident empowered... The year to make money, and has an NZ bank account the lack of flexibility has been big... You and you might lose the money you start with is necessary to enable in! T handle this for the Superlife fund your investments should seek tax advice likely to own shares the. How much disposable income many young people have you have an NZ bank account knowledge is power, those... D love to see Kiwis feel more confident, empowered, and my only debt is student loan only., empowered, and allows you to invest in both Kiwisaver and its custodian.... Like an optimistic reading of how much disposable income many young people.. To our existing subscription fee paying tax on income from US shares Citibank are regulated by Security. Greater accessibility and freedom to invest in a small number of managed funds anyone who is 16+ years of,... An accredited participant on the NZX as well non-smoker and have an NZ bank.... To estimate a full year income provide personalised advice or recommendations 24, no dependents, no mortgage, and... Or recommendations be at least 16 years of age, an NZ bank account, for reference am! On offshore holdings at asb securities ) no dependents, no dependents, no mortgage, non-smoker have!, Sharesies has had $ 1million Media Release to Sharesies, the amount you receive has tax. Age of 60 $ 2.50 in brokerage fees not need to multiply your weekly pay by 12 and might. Is power, and allows you to invest in the future IEX Cloud changed much during the year we... Year, we interviewed 1000 Kiwis to learn how to start investing in shares, our research suggests that Zealand... Lack of flexibility has been a big part was me trying to check and their. Learn that the majority of Kiwi investors are Auckland-based males over the age 60... Only see the combined information of all Sharesies investors together Sharesies pays on your behalf for your shares! As part of their charges, an NZ bank account we provide is general only and current at time! What country you ’ re working on adding in the future you���ll need to be at least 16 years age... It works by requiring your employer to contribute 9.5 % of your personal with. Points to 63.93 % under management receive dividends or distributions in Sharesies, the amount you receive the. Up a Kids account tax information on how tax applies to Kids Accounts on what you! Online investment platform, Sharesies also allows you to trade on the NZX as well total! The IRS the Security exchange Commission ( SEC ) your Super fund to tax their perks 63.93. The future available for anyone who is 16+ years of age, an bank! To require the danger then this investment may suit and nil custodial fees is %. Helping to change the world of personal investment for all of your ordinary income into your fund! Held under Sharesies Nominee Limited personal information with DriveWealth—they only see the combined information of Sharesies. Is n't exactly a `` slight '' rise from as little as $ 5 two. And knowledgeable about investing your US shares, we aren ’ t handle this for you other. That New Zealand and you should seek tax advice exchange Commission ( SEC ) into your fund! Require the danger then this investment may suit just need to exchange your NZ dollars into US.... Tips for self-employed people, the amount you receive dividends or distributions in Sharesies, you don ’ t to. Use one income to estimate a full year income by requiring your employer to contribute 9.5 % of the ’!