Foreign Investment Funds (FIF) Tax

DEFINITION of 'Foreign Investment Funds (FIF) Tax '

A tariff imposed on Australian residents by their government on asset value gains from offshore holdings. The FIF tax was implemented in 1992 to prevent citizens from deferring the payment of Australian tax on investments made outside of the country. Investments that can fall within the definition of FIF funds include personal retirement funds, such as American IRAs and Canadian RRSPs, as well as life insurance wrappers, which are often sold by overseas advisors.

BREAKING DOWN 'Foreign Investment Funds (FIF) Tax '

The FIF tax is as controversial as it is complicated, with a variety of exceptions and loopholes. In its 2009 Federal Budget, the Australian government attempted to address these problems by announcing its intent to repeal and replace the foreign investment fund (FIF) provisions with a more specific rule.

RELATED TERMS
  1. Australian Future Fund

    A sovereign wealth fund established by the government of Australia. ...
  2. Registered Retirement Savings Plan ...

    A legal trust registered with the Canada Revenue Agency and used ...
  3. Tariff

    A tax imposed on imported goods and services. Tariffs are used ...
  4. Tax Rate

    The percentage at which an individual or corporation is taxed. ...
  5. Taxes

    An involuntary fee levied on corporations or individuals that ...
  6. Foreign Fund

    A mutual fund, closed-end fund or exchange-traded fund that invests ...
Related Articles
  1. Markets

    Pros And Cons Of Offshore Investing

    Tax loopholes are shrinking, but there are still plenty of viable prospects. Get the big picture.
  2. ETFs & Mutual Funds

    How Mutual Funds Are Taxed in the U.S.

    A look at how mutual funds are taxed and how investors can be more tax efficient.
  3. ETFs & Mutual Funds

    3 Best Dividend-Paying Australian Equity Mutual Funds

    Discover analyses of the top dividend-paying Australian equity mutual funds, and learn about the characteristics and historical performances of the funds.
  4. Markets

    Tariffs

    Tariffs, or customs duties, are taxes imposed on foreign goods and services. In addition to providing a country with additional revenue, tariffs offer protection to domestic producers. Imported ...
  5. Personal Finance

    Understanding Taxation Of Foreign Investments

    Technically, any gains from foreign investments owned by an American citizen are subject to tax by the company's home country as well as the IRS. However, the Foreign Tax Credit enables you to ...
  6. Investing

    What Taxes Do I Owe On Retirement Accounts Abroad?

    If you're a U.S. retiree, but previously worked abroad, here's what you need to know about taxes on foreign pensions and retirement accounts.
  7. Personal Finance

    Tax Haven Vs. Tax Shelters: Is There a Difference?

    Learn about the difference between tax havens and tax shelters, and how both are used to reduce tax liability or avoid paying taxes altogether.
  8. ETFs & Mutual Funds

    3 Australian Mutual Funds to Avoid

    Learn about several catalysts that may have a negative effect on the Australian economy. Discover three mutual funds to avoid in 2016.
  9. Markets

    Macroeconomics: Government - Expenditures, Taxes and Debt

    By Stephen Simpson ExternalitiesIn a market economy there are important differences between public and private goods. Private goods are considered "rival and excludable" - one person consuming ...
  10. Personal Finance

    Tax-Efficient Investing: Keep More Earned Money

    You can improve investment returns by applying year-round strategies to minimize your tax burden. Here are a few tips.
RELATED FAQS
  1. Can the government tax your capital gains from other countries?

    Learn more about how capital gains earned in foreign countries are treated by the IRS. Discover examples of special tax situations ... Read Answer >>
  2. How do deferred tax assets help in meeting retirement goals?

    Learn how tax deferred assets can help individuals achieve long-term financial goals such as retirement and how they differ ... Read Answer >>
  3. How is a deferred tax asset taxed?

    Find out how the IRS and FASB treat deferred tax assets, which a company can recognize in order to reduce its future tax ... Read Answer >>
  4. What are the most common deferred tax assets used by individuals?

    Use these deferred tax assets to reduce your tax liability and grow your assets simultaneously. Discover the most common ... Read Answer >>
  5. Can foreign investors invest in US hedge funds?

    Understand whether foreign investors are permitted to invest in hedge funds that are based in the United States, and find ... Read Answer >>
  6. What are common reasons for governments to implement tariffs?

    Gain a basic understanding of a government-sanctioned import tariff, what it is meant to accomplish and common reasons for ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center