New Zealand: Tax bill introduced; wage subsidy, other relief extended (COVID-19)

New Zealand: Tax bill introduced; wage subsidy, relief

The government introduced a tax bill and also announced extensions of tax relief measures offered in response to the coronavirus (COVID-19) pandemic.

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Tax bill introduced

The government introduced a tax bill that includes tax policy changes that were consulted on last year.

The rules in the tax bill would:

  • Allow feasibility expenditure deductions
  • Allow the accounting treatment to be followed for tax for leased plant and equipment when IFRS 16 is applied
  • Allocate the total purchase price, for tax purposes, when the vendor and purchase have not agreed the allocation across different assets
  • Tax the sale of residential and business premises, when there is a regular pattern of buying and selling such land
  • Apply goods and services tax (GST) to outbound roaming services

The tax bill also contains a number of remedial items, including remedial measures to revise the research and development (R&D) tax credit rules.

Read a June 2020 report prepared by the KPMG member firm in New Zealand

Extensions to wage subsidy and small business loan application deadline

The government in early June 2020 announced that:

  • The criteria for accessing the wage subsidy extension will be a revenue reduction of 40% or more, rather than 50%.
  • The application deadline for the Inland Revenue administered small business cashflow Loan scheme will be extended to 24 July 2020 (from 12 June 2020.


For more information, contact a KPMG tax professionals in New Zealand:

John Cantin | +64 4 816 4518 | jfcantin@kpmg.co.nz

Darshana Elwela | +64 9 367 5940 | delwela@kpmg.co.nz

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