At 2pm today, the New Zealand Government announced a Business Continuity Package to assist businesses struggling due to the impact of the COVID-19 outbreak.
There are five proposals related to tax.
- Giving Inland Revenue the discretion to remit use-of-money interest (UOMI) for customers significantly adversely affected by COVID-19.
- Increasing the provisional tax threshold from $2,500 to $5,000 from 2020/2021.
- Increasing the small asset depreciation threshold from $500 to $1,000 – and to $5,000 for the 2020/21 tax year.
- Allowing depreciation on commercial and industrial buildings from 2020/2021.
- Removing the hours test from the In-Work Tax Credit (IWTC) from 1 July 2020.
More information on these proposals are available on the Treasury New Zealand website.