Tax Reform Package Announced in New Zealand
April 15, 2016 New Zealand Taxation
Small businesses in New Zealand will soon enjoy easier tax procedures and lowered tax bills.
The Prime Minister of New Zealand John Key has announced a package of tax changes aimed at helping reduce the burdens faced by small and medium sized businesses.
One of the key changes announced is the introduction of new “pay-as-you-go” system for paying Provisional Tax obligations.
The new system will be available to small businesses which utilize accounting software packages which are linked to the IRD, and will allow the business to make Provisional Tax payments based on their actual accounting profits, and not estimates of their profits for the year.
Further, businesses which make use of the uplift method for calculating Provisional Tax obligations will not face any Use-of-Money-Interest charges on their first two payments.
The new tax changes are part of the government’s ongoing “Making Tax Simpler” initiative, which aims to help businesses and individuals meet their tax obligations with less effort, while also increasing tax transparency for all taxpayers.
Photo By: Nathan Hughes Hamilton