A Kids Account has access to most Sharesies investments, however some investment options are more suitable for Kids Accounts from a tax perspective. To search these you can toggle “ON” our Kids Account filter feature by choosing:

  • Invest > See all

  • Kids > Toggle to ‘ON’

You can also toggle “OFF” by choosing:

  • Invest > See all

  • Kids > Toggle to “OFF”

Tax works differently for companies, exchange-traded funds (ETFs), and managed funds. Managed funds are more suited for a Kids Account because they’re taxed at the prescribed investor rate (PIR) for the child.

Dividends or distributions from ETFs (which are listed PIEs) are taxed at a flat rate of 28%. Company dividends are taxed at a rate of 33% (made up of a combination of resident withholding tax (RWT) and imputation credits), so the child may be eligible for tax credits. This is a reduction of the initial amount of tax that an individual has to pay. When these credits are declared to Inland Revenue (IRD), they’ll be noted and are able to be used once the child starts earning an income.

Tax on Sharesies

If you have any questions at all, please do get in touch at help@sharesies.co.nz.

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