Property taxation is currently a hot area of focus for the Tax Department. If you’re buying, selling or renting property in New Zealand, it’s important to understand how property taxation works and your responsibilities as a business owner.
If you are moving to New Zealand, or are returning to New Zealand from overseas, then you could quality for the transitional tax resident exemption. We explain what this means and how it impacts your tax obligations.
As the tax landscape continues to change with increased complexity of tax regulation both domestically and overseas, the management of tax is fast becoming a necessary part of today’s advisory board agendas. Graham Lawrence gives some important advice to business owners who want to get it right.
From our experience, many businesses consistently fail to give Fringe Benefit Tax (FBT) the attention it deserves; a decision that will inevitably hurt business profitability. The correct treatment of FBT is a strategic issue that business leaders are ultimately responsible for. Following a recent review, the Tax Department has made clear its intentions to crack-down on incorrect FBT compliance.
The IRD is in the process of transforming its operations to make it faster and easier for New Zealanders and businesses to pay the right tax and receive the entitlements they should.
The Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 introduces new rules that will allow companies engaging in intensive research and development activities to cash out their tax losses for research and development expenditure. The new rules underpin the Governments Business Growth Agenda around encouraging business innovation and recognises that research and development is a key element in this process.
SMEs are estimated to make up 97% of enterprises in New Zealand and employ 30% of the workforce, excluding self-employed. Put simply, SMEs play a critical part in the economy and at a time when businesses are striving to better use resources, it is pleasing to see the Government announce a largely positive and pro-business tax package as part of the Inland Revenue’s Business Transformation and as one of the many measures we will see in Budget 2016.
At a time when the tax landscape continues to change, it appears an old established rule dating back to the 90’s has become one of the focuses of the New Zealand Tax Department's current compliance programme.
As many readers now know, a new wave of tax compliance has been imposed on taxpayers who purchase residential properties. Unfortunately, for the unsuspecting few, this could lead to a visit from the Tax Department. So as the dust settles on the new property tax rules what do taxpayers need to be aware of and what is the likely future impact of the changes?
Making savings with your FBT can save you a few thousand a year - and being smart around how you make available company vehicles to employees is one option. Graham Lawrence reports.