It’s NZ’s CFC/FIF rules. See https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-income/foreign-investment-funds-

It’s NZ’s CFC/FIF rules. See https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-income/foreign-investment-funds-fifs https://www.ird.govt.nz/income-tax/income-tax-for-businesses... https://taxsummaries.pwc.com/new-zealand/individual/income-determination https://taxsummaries.pwc.com/new-zealand/individual/income-d... No I don’t believe you can get tax credits for paper loses. But you definitely do have to pay for paper gains. Most financial firms in NZ wrap US/growth stocks in a special type of investment called a PIE, which essentially they handle the tax issues for you (Ie your net % gain includes after this wealth tax is taken into account).