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.
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 | email@example.com
Darshana Elwela | +64 9 367 5940 | firstname.lastname@example.org
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