Financial Adviser

Tax guide for New Zealand self-employed financial advisers and planners

Allowable Expenses

• Professional licences & fees — FMA licensing fees, AFA annual fees, authorisation costs
• Professional indemnity insurance — Required for all financial advisers
• Professional memberships — Financial Advice NZ, INFINZ
• Client management software — CRM, financial planning tools, portfolio software
• Continuing education — CPD requirements, product training, compliance updates

Tax Tips

• FMA licensing fees are a deductible business expense
• Professional indemnity and public liability insurance premiums are fully deductible
• Financial planning software subscriptions are 100% deductible if used for client work
• Client meeting travel — vehicle costs to visit clients at their homes or offices — is a deductible business expense

Frequently Asked Questions

Are FMA licensing fees deductible for NZ financial advisers?

Yes. Annual FMA licensing fees, authorisation costs, and professional body membership fees are deductible business expenses for self-employed financial advisers.

Is professional indemnity insurance deductible for NZ financial advisers?

Yes. Professional indemnity insurance required by the FMA as a condition of providing regulated financial advice is a fully deductible business expense.

Can I deduct financial planning software for client portfolio management?

Yes. Software used to provide financial planning advice to clients — such as portfolio management tools, risk profiling software, or client CRM systems — is a deductible business expense.

How are commissions and trail fees taxed for NZ financial advisers?

All commissions, upfront fees, and trail fees received are taxable income in the year they are received. They must be declared on your IR3 as self-employment income. Keep detailed records from product providers.