research and development tagged posts

IRD Details New R&D Cash-Out Rules

April 6, 2016 New Zealand Taxation

tax credits for researchSmall research firms in New Zealand will soon receive cash payments from the government when incurring losses.

On April 5th the Inland Revenue Department released a report detailing early information regarding the upcoming rules for “cashing out” losses incurred during research and development activities.

In the report it is stated that when the rules are fully enacted, New Zealand resident entities with significant research and development expenses will be able to receive a cash payment equivalent to their tax losses for the year.

The cash payment will be repaid with the tax payments made by the entity over subsequent years.

The amount of the payment is set to be capped at NZD 500 thousand in 2016, rising by NZD 300 thousand each year for the next five years.

It was stated that t...

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R&D Needs More Backing

January 14, 2014 New Zealand FinanceNew Zealand Taxation

Tax deductionsResearch and development activity could be a major boon for New Zealand, however, this sector receives little to no government support.

According to a new statement issued by the accounting firm Grant Thornton on January 12th, tax incentives for research and development activity conducted in New Zealand could be a major contested point among political parties during this November election.

Incentives for research and development activity came out as the highest priority among business leaders in the country, according to the result of a survey conducted by the accounting firm.

In the newly issued statement it was noted that the government already does have a system to incentivize research and development activity, with a fund which may provide dollar-for-dollar funding to businesses engag...

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Opposition Releases Suggestions For Manufacturing Revival

June 18, 2013 New Zealand FinanceNew Zealand Taxation

manufacturingCalls have been raised for the government to help the national manufacturing sector through a series of new policies and tax changes.

On June 18th the leaders of the oppositions parties held a press conference in Christchurch to announce the release of a new report on the economic and taxation measures which could be implemented in New Zealand in order to boost the national manufacturing sector.

The report calls for the government to take extra steps to the reduce the volatility in the value of the New Zealand dollar, to implement taxation measures and economic incentives to encourage greater investment in businesses and not into housing, and to reintroduce tax credit for businesses involved in research and development activities.

More work also needs to be done to reduce the structural co...

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Calls Raised for R&D Credits

February 22, 2013 New Zealand Taxation

tax credits for researchRemoving tax credits from research and development activity was an inefficient move for New Zealand.

According to a statement released by the Auckland based Andersen Accountants on February 21st, a new report from the Organization for Economic Cooperation and Development has highlighted New Zealand’s current tax treatment of research and development activities conducted by local firms.

According to Anderson Accounting, tax credits for research and development activity incentive desirable economic activity, and removing the measures is similar to firing the highest performing sales people.

If reinstated, tax credits for research and development could be reworked and made more efficient than in the past by tightening the rules concerning the characterization of expenses and also by limiting ...

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