Foreign Investment Fund (FIF) Investments

We are often faced with questions around the choice of FIF calculation method that taxpayers can choose. Whilst it is a common knowledge that Fair Dividend Rate (FDR) or Comparative Value (CV) methods can be used where market value is readily available, there are limitations on the choice of method used.

In case of a Natural Person or a Trust both FDR or CV can be used, depending on which method provides a better outcome, unless forced CV is required. Companies are precluded from opting to use the CV method and are only able to use FDR method.