The short answer
Use a method allowed for the transaction under Inland Revenue guidance and apply it consistently; not every transaction uses the same rate.
IRD describes accepted sources and methods including published rates and certain mid-month or average rates, with separate requirements for financial arrangements and FIF calculations. A rolling average may not be appropriate for a significant one-off event.
What to do next
Keep a dated record of the original foreign-currency amount, conversion method, rate source and NZ-dollar amount.
Sharesight
This official website is a relevant starting point for this question. Product access or eligibility depends on where you live and the provider's own requirements.
Visit Sharesight ↗Official website — not an affiliate tracking link. A resource link does not imply that every reader qualifies for its services.
Questions people ask
What is the recommended option for which exchange rate should I use for overseas dividends in my NZ tax return?
Use a method allowed for the transaction under Inland Revenue guidance and apply it consistently; not every transaction uses the same rate.
Which residency or country restrictions apply to which exchange rate should I use for overseas dividends in my NZ tax return?
Yes. This page describes the rule or example for New Zealand. The contract, residence and tax rules in another jurisdiction can differ.
Primary source
Our answer is based on guidance published by NZ Inland Revenue currency conversion.
This article explains the published general rule or provider example. It does not establish personal eligibility, a guaranteed allocation or an individual tax outcome.
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