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There is a great deal of uncertainty around COVID-19 and its potential impact on New Zealand.  

To keep you informed we have attached a copy below of Inland Revenues latest tax proposals to support New Zealand businesses: 

Please let us know if you have any queries.  

Kind regards

BAVAGE CHAPMAN LTD
Ph: 09 425 9835
www.bavagechapman.co.nz
manager@bavagechapman.co.nz

 

Tax Policy Update

The latest news and information about the Government's tax policy work programme


17 March 2020·taxpolicy.ird.govt.nz

COVID-19 tax proposals

The Minister of Finance today announced a business package containing proposed measures to support businesses affected by the corona virus outbreak. The tax-related measures include:

  • Reintroducing building depreciation to help encourage investment in industrial and commercial buildings.
  • Increasing the allowance to expense low value asset purchases from $500 to $5,000 for a one-year period, with a $1,000 allowance after that.
  • Relieving small business owners of the requirement to pay tax through the provisional tax system by raising the threshold from $2,500 to $5,000.
  • Allowing the Commissioner of Inland Revenue to cancel use of money interest on underpayments of tax for taxpayers unable to pay tax on time due to the outbreak.
  • Allowing Inland Revenue to share information with government departments to help these agencies provide assistance in relation to the outbreak.

The necessary legislative amendments will be included in a Bill to be introduced soon.

For full details on these proposals, see the Beehive website.

New Zealand Government