The government announced that with the introduction of the top marginal tax rate of 39%, there would be increased focus on trusts. The trust tax rate is still at 33% and so there could be the incentive to funnel income through a trust if trustees or beneficiaries were paying 39% on their individual income. Any …
The government recently announced an increase to the Small Business Cashflow Scheme (SBCS). This scheme is available for businesses with 50 or fewer employees. The SBCS was introduced to support small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19. When the scheme was initially announced, businesses could draw …
Inland Revenue (IR) has recently released information setting out the tax rules which apply on fees paid to board members. The way taxation applies to any fees paid to members will depend on the personal circumstances of the individual member and the terms of their contract/appointment. Employees Many SME companies have employees sitting on the …
Wage subsidies are no longer in the mix of COVID-19 business assistance but with omicron now gaining a foothold in New Zealand, we thought it was a good idea to remind readers that there are still some government programmes available. Both the Short-term Absence Payment and the Leave Support Scheme are still in place, along …
Remaining Government COVID-19 Assistance for business Read More »
The team at Generate Accounting would like to wish all our lovely clients and suppliers a very Merry Christmas and a happy and prosperous 2022. We hope you take the time to unwind with friends and family after such an exhausting year. We will close at midday on Thursday 23rd December and reopen again on …
The government has announced that a new one-off transition payment will be available for businesses from 10 December this year. Businesses need to have suffered a 30% drop in revenue between October 3 and November 9 compared to a typical week in the six weeks prior to August 17 to be eligible. The transition payment …
The government has extended the COVID-19 Business Debt Hibernation (BDH) scheme until 31 October 2021 in response to the pressures placed on businesses during the pandemic. Businesses who qualify to use the BDH scheme can buy up to six months grace in order to pay their creditors and have time to address their cash flow …
Inland Revenue have announced that a new resident withholding tax rate for high income earners is now available. If you are New Zealand resident, income that you earn from interest and dividends has tax deducted “at source”. This means that it should be tax free when it is paid to you but only if you …
New Resident Withholding Tax Rate for Higher Income Earners Read More »
When you purchase a business, thought needs to be given to how you will value assets like stock, property and financial arrangements. Inland Revenue has brought in Purchase Price Allocation Rules to standardise the process. The rules apply from 1 July 2021 and will ensure that both the purchaser and the vendor account for valuations …
The government has announced significant changes that will impact residential property investors. The Bright Line Test will be extended to ten years, a move that was widely anticipated. In a surprise move, the government will remove interest deductibility on residential rental property mortgages. Brightline Test Extension The existing bright line test will be extended from …
