New Zealand: Feasibility expenses, share schemes - KPMG Global
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New Zealand: Proposals for feasibility expenses and start-ups’ share schemes

New Zealand: Feasibility expenses, share schemes

The government of New Zealand is seeking feedback on two tax proposals:


Related content

  • New rules for “feasibility expenditure,” with deductibility to be based on the treatment of these costs under International Financial Reporting Standards (IFRS), and proposals to address “black hole” expenditures
  • New rules for employee share schemes of start-up companies, aimed at addressing liquidity and valuation issues

Submissions are due on 6 and 12 July 2017, respectively. 

KPMG observation

The proposed legislative clarification of the tax treatment of feasibility expenditure follows the recent Supreme Court decision which, according to some tax professionals, went further than what both taxpayers and Inland Revenue had been expecting. The proposal could redress some of the balance. Also, the start-ups’ employee share scheme proposals are an extension of the rules contained more generally in the Taxation (Annual Rates for 2017-18, Employment and Investment Income, and Remedial Matters) Bill.


Read a June 2017 report [PDF 590 KB] prepared by the KPMG member firm in New Zealand

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