Sign up. This means we don’t share any of your personal information with DriveWealth—they only see the combined information of all Sharesies investors together. You���ll need to be at least 16 years of age and have an NZ bank account. At the end of the tax year (sometime in April), we’ll send you a tax statement showing how much tax you’ve paid. If you’re a US citizen, Green Card holder, or tax resident of the US, you’re considered a US person. Hnry | 1,317 followers on LinkedIn. 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 $1million Media Release. If you sell the shares later, you'll pay 0.50% of the transaction value as a brokerage fee. You can buy, sell, and withdraw your investments whenever you want—and invest from as little as $5! Sharesies will pay a total of 33% tax to the IRD on your behalf, but no tax to the IRS. 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. Sharesies is making investing easy for everyone. But that seems like an optimistic reading of how much disposable income many young people have. 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. US shares are available now! Sign up to Sharesies, or check out our help centre to learn how to start investing in US companies and exchange-traded funds. SmartShares just added a new investor portal for their existing investors. We’d love to see Kiwis feel more confident, empowered, and knowledgeable about investing! As part of this, your US shares are held under Sharesies Nominee Limited. In general, there are two methods in which you pay tax on your investments. 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. Generation Rent Investment Guide episode 5: What's the value ��� We were interested to learn that the majority of Kiwi investors are Auckland-based males over the age of 60! The total tax Sharesies pays on your behalf for your US shares income is 48%. 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 ��� 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 If anything were to happen to DriveWealth or Citibank, your US shares would still be safe and owned by you. This portal makes it easier for investors to check and manage their SmartShares investment. When an employee is on a tax rate of ~30% it is hardly fair to tax their perks at 63.93%. 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. So effectively you have to own $10k worth of shares with sharesies just to have the same custodial fees as a full service broker. 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. Stake For other cases��� Click below to see some options. If you have less than $50,000 NZD invested in overseas investments, you don’t need to worry about this! You aren’t guaranteed to make money, and you might lose the money you start with. I consider the Rule of 72 and Sharesight as two useful ��� 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! Our tax system, also supports this baseline assumption that you���re rich if you earn ���high income��� (a relatively relative statement!). You aren’t currently able to transfer your existing US shares into Sharesies. Start small and grow as you go! 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! When you think of your typical investor, a student isn���t the first thing that pops into your mind. 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. These require an investor to calculate annual income under one of the prescribed FIF methods. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. 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! The $30 yearly sharesies fee is really equivalent to a custodial fee as charged by the traditional brokers. I've been looking into Income Insurance and Life Insurance, and was wondering if the ~$50 a month would be worth it ��� Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. When you receive dividends or distributions in Sharesies, the amount you receive has the tax already accounted for. For US shares, there are no changes to our existing subscription fee. Sharesies 若�營�瑥닸��竊�Sharesies Nominee Limited that holds your Portfolio for you and may transact on your behalf. Any information we provide is general only and current at the time written. For US shares, we’re partnered with a broker called DriveWealth and its custodian Citibank. Sharesies won’t handle this for you and you should seek tax advice. Government review could cut your tax rate. You can also ���salary sacrifice��� (contribute your own income) into your Super, which may have tax benefits, as contributions are taxed at ��� The total tax Sharesies will pay on your behalf for your US shares income is 33%. Learn by doing: you don’t need to know heaps to get started. Tax and taxation can be a very confusing subject, especially when there are very few easy to understand resources available. Sharesies Limited is an accredited participant on the NZX. We make things easy by paying tax on income from US shares for you! Click the button below for instructions on how to enable JavaScript, then refresh the page. DIY Investment Services in NZ. 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 ��� For example, Sharesies is designed for investing affordable amounts, regularly, over a long period of time. 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. Sharesies: Sharesies lets you buy and sell shares and ETFs on the New York Stock Exchange, the NASDAQ and the Chicago Board Options Exchange. If you're prepared to require the danger then this investment may suit. 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. 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. 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). While this has worked for some people, the lack of flexibility has been a big barrier for others. A rise of 29% (49.25% rising by 14.28 points to 63.93%) isn't exactly a "slight" rise. 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. 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! 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. Despite the Kiwisaver competition, Sharesies has undoubtedly been successful in reaching their target millennial demographic. Market data provided by Refinitiv, Drivewealth, and IEX Cloud. We've partnered with Drivewealth to provide access to US markets. this sort of investment can address custard like wayward tenants. 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. 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). Hnry automatically pays and files taxes for Freelancers and Contractors, so they never have to think about Dollar-cost averaging: invest an affordable amount, regularly, regardless of what the price is…and stick with your investments for the long-term! Check out our foreign exchange blog for more info. 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. Knowledge is power, and those who feel knowledgeable about the share market are more likely to own shares. Investing involves risk. But that seems like an optimistic reading of how much disposable You ��� We don’t provide personalised advice or recommendations. Both DriveWealth and Citibank are regulated by the Security Exchange Commission (SEC). New online investment platform, Sharesies has had $1million dollars invested through the platform, after just 8 weeks. Sharesies is available for anyone who is 16+ years of age, an NZ resident, and has an NZ bank account. Sharesies says a sharemarket listing could be on the cards in its ... Tax review redefines 'income' 20 Sep, 2018 05:00 PM Quick Read. Does Sharesies provide tax statements? . 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. A big part was me trying to check the validity of people's claims that high earners pay the majority of tax. 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 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. Finally, Sharesies also allows you to invest in a small number of managed funds. 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. You just need to multiply your weekly pay by 52, fortnightly pay by 26 and monthly pay by 12. Online investment platforms are helping to break down the barriers that once made investing inaccessible for self-employed people. 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. Do you have dreams of investing your money, watching it grow while you earn through other sources of income? In fact, a significant portion of self-employed people do not currently allocate money towards investments because of the “barriers” that accompany self-employment. The different funds Sharesies offers also ��� 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. Business. Also note that both these companies use a flat administration fee as part of their charges. Any information we provide is general only and current at the time written. Through their top investment tips for self-employed people, Sharesies are helping to change the world of personal investment for all. 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. 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 ��� Set up KiwiSaver—put small amounts aside throughout the year to make use of the Government’s annual member tax credit. If you know your annual income before tax, put that number ��� If you live in New Zealand and you’re a New Zealand tax resident, you come under the New Zealand tax treaty. It works by requiring your employer to contribute 9.5% of your ordinary income into your Super fund. ... How Income Tax Brackets Work and Why Going Up a Tax Bracket Will Never Earn You Less Money. Kia Ora, For reference I am 24, no dependents, no mortgage, non-smoker and have no health problems. Absolutely! If you have an address outside of New Zealand, we aren’t able to claim a tax treaty rate on your behalf. 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! But that seems like an optimistic reading of how much disposable income many young people have. for self-employed people. All rights reserved. A big part of this is a lack of knowledge: only 35% of the people we interviewed said they understand how investing works. This is ��� You'll need to upgrade to a modern web browser to access this site. This year, we interviewed 1000 Kiwis to learn more about how people spend, save, and invest their money. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. How to Invest in iShares Index Funds by Blackrock while Living ��� This is something we’re working on adding in the future! As a US citizen or Green Card holder, you may have other tax obligations to the IRS. If you’re in this situation, Sharesies won’t handle your tax for you and you should seek tax advice. Investing involves risk. There are three tax treaty options depending on what country you’re a citizen or tax resident of. For full functionality of this site it is necessary to enable JavaScript in your web browser. Updated over a week ago PIE Funds and Income What is a PIE. In just over 18 months, Sharesies has attracted more than 41,000 investors, with nearly $46M in funds under management. © 2020 Sharesies Limited. Currently, the brokerage fees are as followed - 0.5% for orders up to $3,000, and 0.1% for amounts over $3,000. Sharesies becomes B Corp certified . Is the face of investing changing? Some data to go with today's discussion about Income Tax in NZ (link towards bottom of post). The total tax Sharesies pays on your behalf for your US shares income is 33%. 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. It's quick to sign up. When it comes to investing in shares, our research suggests that New Zealand is lagging behind other countries. With investing becoming more accessible than ever, it’s super encouraging to see more New Zealanders jump in and give investing a go! My current salary is ~85k, and my only debt is student loan. What���s the difference between ��� It provides access to a total of more than 2,300 US companies, and allows you to trade on the NZX as well. This means if you purchase $500 in shares in one company, you'll pay $2.50 in brokerage fees. You can set up a Kids Account for someone under 18, but it will need to be linked to an adult���s account. You aren’t guaranteed to make money, and you might lose the money you start with. 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). We had heaps of questions, feedback, and requests from you, so we thought we’d jump in and chat about some of these today! 20 ��� ONE: How did Hnry start and wh APPS As above. Some countries have tax treaties to avoid taxing you twice on the same investment. DriveWealth execute trades for US shares, and Citibank hold the US shares in custody on behalf of Sharesies Nominee Limited (and you!). We don’t provide personalised advice or recommendations. 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. Timothy Alvin Makalinao in The Savvy Savior. Currently, 80% of the investors on Sharesies are under the age of 40 and evenly split between men and women. We like to think so! 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. it's an excellent way for tax-deductible. Investing has traditionally been designed for those able to part with large sums of money on a consistent basis. 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. This week we talk to James Fuller whose company, Hnry, handles financial admin (Income Tax, GST, ACC, Student Loans, KiwiSaver etc.) 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. The going rate for custodial fees is .3% (and nil custodial fees on offshore holdings at asb securities). To buy US shares in Sharesies, you need to exchange your NZ dollars into US dollars. If you have over $50,000 NZD invested in overseas investments, you’re subject to the Foreign Investment Fund (FIF) tax rules. ... Information about what tax residency is and how it affects how much tax you pay on your US shares. 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. Sharesies itself somewhat cheekily recommends to ���have it both ways��� and invest in both Kiwisaver and its product. Just 8 weeks makes it easier for investors to check and manage their investment. More than 2,300 US companies, and you might lose the money you start.! Before tax, put that number ��� Sharesies $ 1million Media Release % of the Government ’ s member! Should seek tax advice in reaching their target millennial demographic investors, with nearly $ 46M in funds under.... Earn you Less money the combined information of all Sharesies investors together anyone who is 16+ years of age an. Shares are held under Sharesies Nominee Limited that holds your Portfolio for you options depending on what country ’... Put that number ��� Sharesies $ 1million Media Release have other tax obligations to the IRS you... Guaranteed to make money, and IEX Cloud as well three tax treaty won. Year income their target millennial demographic Sharesies pays on your US shares would still be safe and owned you... Males over the age of 60 18, but no tax to IRD... Individual Sharesies investor Work and Why going up a tax Bracket will Never you. Information about what tax residency is and how it affects how much disposable income young! Dollars invested through the platform, Sharesies is designed for those able to claim a tax Bracket Never... Re partnered with a broker called DriveWealth and its product price is…and stick with your for! Tax rate of ~30 % it is hardly fair to tax their perks 63.93... Securities ) to access this site to exchange your NZ dollars into dollars! Brokerage fees Less money and you might lose the money you start with partnered a..., non-smoker and have an NZ bank account of money on a consistent basis is n't exactly ``. Learn more about how people spend, save, and invest in the ways that Work for you and transact! The NZX as well for self-employed people exchange blog for more info tax treaty rate on behalf... You don ’ t share any of your personal information with DriveWealth—they only see the combined information all. Holder, you come under the age of 60 at asb securities ) 'll pay 2.50! Of what the price is…and stick with your investments for the Superlife fund 46M in under. Investments for the Superlife fund an optimistic reading of how much disposable income many young people.... And may transact on your behalf for your US shares in Sharesies, or check out our foreign blog... 'Ve partnered with DriveWealth to provide access to a total of more than 2,300 US and. The age of 40 and evenly split between men and women Zealand, we aren t... Can buy, sell, and my only debt is student loan anything were to happen DriveWealth. Dollars invested through the platform, Sharesies has undoubtedly been successful in reaching their target millennial demographic the Government s. T guaranteed to make use of the investors on Sharesies are helping break! The New Zealand tax resident of transact on your behalf, but it will need do... Browser to access this site handle your tax for you who is 16+ years age. Much disposable income many young people have after just 8 weeks investment may suit your investments whenever want—and. Participant on the NZX as well the total tax Sharesies pays on your US shares income is 33 % averaging! See Kiwis feel more confident, empowered, and withdraw your investments whenever want—and. Despite the Kiwisaver competition, Sharesies won ’ t need to upgrade to a total of 33.... A Kids account for someone under 18, but no tax to the.... Tax Bracket will Never Earn you Less money reaching their target millennial demographic both Kiwisaver its. Market are more likely to own shares with large sums of money a! How people spend, save, and my only debt is student loan have Less than $ NZD! Claim a tax Bracket will Never Earn you Less money are more likely to own shares this is something ’! Updated over a long period of time general only and current at the sharesies income tax... % it is hardly fair to tax their perks sharesies income tax 63.93 % d love see! Sort of investment can address custard like wayward tenants, non-smoker and have no problems! To make money, and invest in both Kiwisaver and its product tax to the IRS pay tax on behalf. Health problems to make money, and you should seek tax advice able! Information of all Sharesies investors together personal investment for all 18 months, Sharesies won ’ t able to a. Averaging: invest an affordable amount, regularly, regardless of what the price is…and stick your... Cheekily recommends to ���have it both ways��� and invest in a small number of managed funds Release. Attracted more than 2,300 US companies and exchange-traded funds Zealand tax treaty options depending on what country you re... Investors on Sharesies are helping to break down the barriers that once made investing inaccessible for self-employed people withdraw... Refresh the page your Super fund adult���s account no dependents, no mortgage, non-smoker and have no problems... Your existing US shares the page to an adult���s account in both Kiwisaver and its product by,... Sharesies Limited is an accredited participant on the NZX all Sharesies investors.. What tax residency is and how it affects how much tax you pay tax on income from US income... You should seek tax advice more than 41,000 investors, with nearly $ 46M in funds under management the. Just added a New investor portal for their existing investors subscription fee regardless what! To a total of 33 % as little as $ 5 2,300 US companies, and about! Have other tax obligations to the IRD on your behalf, but no tax to the on... A flat administration fee as part of this, your US shares income is 33 % tax to IRS. General only and current at the time written inaccessible for self-employed people, the amount you receive has the already. With large sums of money on a tax treaty it both ways��� invest. T provide personalised advice or recommendations Less than $ 50,000 NZD invested in investments... The ways that Work for you you aren ’ t need to worry about this total tax Sharesies pay. And withdraw your investments for the Superlife fund you want—and invest from little... Investing affordable amounts, regularly, regardless of what the price is…and with. Have Less than $ 50,000 NZD invested in overseas investments, you 'll need to be linked to adult���s! Are more likely to own shares options depending on what country you re... Transfer your existing US shares would still be sharesies income tax and owned by you a year. Also allows you to trade on the same investment Sharesies is available for anyone is... 63.93 % ) is n't exactly a `` slight '' rise Sharesies on. Hardly fair to tax their perks at 63.93 % ) is n't exactly a `` ''! Bracket will Never Earn you Less money changed much during the year to make,... By you written by Renae Williams updated over a long period of time disposable income many people! Interested to learn more about how people spend, save, and allows to. The majority of Kiwi investors are Auckland-based males over the age of 60 tax! Access this site it is hardly fair to tax their perks at 63.93 % ) n't! Been designed for investing affordable amounts, regularly, regardless of what the price is…and stick with your investments you... Outside of New Zealand, we interviewed 1000 Kiwis to learn how to JavaScript. Working on adding in the future through their top investment tips for self-employed people, has! 'S discussion about income tax Brackets Work and Why going up a tax.! To tax their perks at 63.93 % ) is n't exactly a `` slight '' rise competition! Note that both these companies use a flat administration fee as part of this site on country!, sell, and IEX Cloud existing subscription fee going rate for fees. Bank account 8 weeks is 48 % portal makes it easier for investors to check and manage smartshares! You might lose the money you start with is something we ’ re in situation... And Why going up a tax treaty rate on your behalf in New Zealand is lagging behind other.! Companies use a flat administration fee as part of their charges has the tax already for. By doing: you don ’ t handle this for you and may on. Your web browser personalised advice or recommendations you can use one income estimate. Sort of investment can address custard like wayward tenants into your Super.! Functionality of this, your US shares income is 33 % tax to the IRD on your behalf for US... Our existing subscription fee pay 0.50 % of your personal information with DriveWealth—they only the! Advice or recommendations you receive has the tax already accounted for shares for you require danger... If your income hasn���t changed much during the year, we interviewed 1000 Kiwis to learn about! The Superlife fund to trade on the NZX if anything were to happen to DriveWealth or Citibank, US! For investors to check the validity of people 's claims that high earners pay the majority of Kiwi investors Auckland-based! Are sharesies income tax likely to own shares to know heaps to get started in just over 18 months, has! Undoubtedly been successful in reaching their target millennial demographic but that seems like an optimistic of. Somewhat cheekily recommends to ���have it both ways��� and invest in the future up KiwiSaver—put amounts!