p

Coronavirus Alert:

Avoid NZ travel restrictions. We can assist with everything you need to establish a New Zealand business without leaving Australia. Call us now on 1300 791 600

Year-end tax planning for Australian businesses operating in New Zealand

Year-end tax planning for Australian businesses operating in New Zealand

As we approach the end of New Zealand’s tax year (31 March for most) it’s a good idea to check off these tax planning tips. It will help us to get the best result for you as we prepare your New Zealand income tax returns.

Many businesses have been impacted by COVID and there are tax planning tips in here that may help. So consider these tax tips in the run-up to New Zealand’s year-end so that we can help you to get the best outcome.

Our experienced team is well versed in the things to watch out for when it comes to Australian companies carrying out business activity in New Zealand.

Which foreign exchange rates can you use when converting Australian transactions into New Zealand currency?

Which foreign exchange rates can you use when converting Australian transactions into New Zealand currency?

Inland Revenue has released a document which approves foreign exchange rate sources which can be used in order to convert a foreign currency amount into New Zealand dollars for tax purposes.

The notice also approves the use of mid-month, end-of-month and rolling average currency conversion methods where appropriate. These methods can be used unless specifically excluded under New Zealand’s Income Tax Act 2007 or if the Commissioner states otherwise.

We now offer Taxpayer Insurance

We now offer Taxpayer Insurance

In the past, a tax audit has been a tax audit. However recent legislative changes now allow Inland Revenue to carry out “mini-type” tax audits which may be in the form of general widespread questions.

Inland Revenue (IRD) can take an interest in the taxation affairs of any New Zealand taxpayer at any time, even if you have never been targeted before. Whether it is an Income Tax, GST or Payroll Return, IRD can still initiate an enquiry. 

This can result in time and additional costs for us to liaise with IRD and help you resolve any issues.

We have got you covered.

My Australian-based employee wants to live in New Zealand – Do I have to register as a New Zealand employer?

My Australian-based employee wants to live in New Zealand – Do I have to register as a New Zealand employer?

We often get questions from Australian employers on how to deal with the situation where an employee is looking to resettle in New Zealand or they are looking to employ someone who is based in New Zealand.

An Australian employer has an obligation to account for withholdings to Inland Revenue if they are carrying out business from within New Zealand and they have engaged the employee to assist them to carry out the business activity over there.

New Zealand’s COVID-19 Traffic Light System

New Zealand’s COVID-19 Traffic Light System

New Zealand is moving to a new way of restricting movements during COVID-19 outbreaks. The new traffic light system commences on 3 December 2021 and is designed to allow greater freedom to vaccinated New Zealanders while curbing freedoms to those who choose to remain unvaccinated.

As you might guess from the name, regions in New Zealand will be zoned either green, orange or red and the zones will change in relation to the local COVID situation.

Do your New Zealand employees need to be vaccinated?

Do your New Zealand employees need to be vaccinated?

The New Zealand government will be releasing a tool in mid-December to assist New Zealand employers to determine if their employees need to be vaccinated.

This is part of the process designed to protect businesses and workers from COVID-19 as New Zealand prepares itself to transition to the new COVID-19 protection framework which kicks in from 3 December 2021.

New Zealand Moves The Goalposts With Regard To Rental Properties And Tax

New Zealand Moves The Goalposts With Regard To Rental Properties And Tax

The New Zealand government has announced a number of changes that will directly impact on taxpayers who own a residential rental property in New Zealand.

Some of the changes will only impact on you if you purchased a house on or after 27 March 2021 while some of the changes will impact on all taxpayers who own residential rental properties in New Zealand.

Inland Revenue Clamping Down On Sales Of New Zealand Properties Bright-Line Rule

Inland Revenue Clamping Down On Sales Of New Zealand Properties Bright-Line Rule

Inland Revenue is in the process of contacting taxpayers who they believe will be subject to the new bright-line test as a result of selling properties in New Zealand that were purchased after 1 October 2015.

The bright-line test was introduced to provide Inland Revenue with some certainty on when there was an “intention to sell” at a profit when someone purchased a property.

If your property was sold within 2 years of acquisition, and you were not lived in for at least 50% of the time, then chances are you are going to be caught under the bright-line rule which made the profits subject to income tax.