We have previously reported that Inland Revenue are responding to the impact that Covid-19 is having on New Zealand businesses by allowing deferrals of tax that would ordinarily be payable but is proving a challenge as a result of current business conditions.
The New Zealand government considers it essential that businesses continue to file returns as that is providing information with regard to the difficulties faced by businesses and the general economic outlook. Therefore the areas of relief relate to any late payment penalties rather than late filing penalties.
New Zealand’s Inland Revenue has confirmed they will be continuing with the planned shutdown over the Easter break while they complete the migration of the remaining systems still hosted on Inland Revenue’s old tax system to their new tax system.
Their core systems will be down from 3 PM (New Zealand time) Thursday, 9 April 2020 and expect to come online Thursday, 16 April 2020.
The New Zealand government is introducing legislation, similar to that recently introduced in Australia, with regard to companies who are struggling to maintain solvency as a result of the coronavirus outbreak.
The intent is to allow companies to place their current debt into a form of hibernation and to provide directors with a “safe harbour” that will protect them against action by creditors.
If you have been reading our blog you will be aware of the wage subsidies that have been available to New Zealand businesses (including Australian -controlled companies) who have been impacted by the coronavirus update.
The conditions on current and future applications have now been modified to ensure the spirit of the wage subsidy is understood and adhered to.
We mentioned back in February about how Inland Revenue were allowing businesses impacted by the Coronavirus outbreak to defer payment of a range of taxes.
The deferral covers all taxes including New Zealand GST, PAYE (employer) withholdings and income tax and relates to all payments due after 14 February 2020.
However, it is important to note that you still need to FILE all tax returns by the due date.
The New Zealand government has increased its Coronavirus support by another NZ$6.25 billion with the “Business Finance Guarantee” scheme.
It has been designed to provide short-term credit to help protect the solvency of small and medium-sized New Zealand businesses that have been affected by the Covid 19 outbreak.
As part of the business stimulus package for New Zealand businesses we have previously advised that wage subsidies of up to $585 are available for full-time workers working more than 20 hours per week and $385 per week for part-time workers working less than 20 hours per week.
But how do you treat them in your accounting system and what about tax?
The New Zealand government has released a list of what it considers to be “Essential Business” and therefore exempt from the lockdown.
Here is a list of essential services that can operate during the Coronavirus lockdowns:
As the impact of the Coronavirus continues to evolve in a way we simply couldn’t have predicted just a few short weeks ago, we wanted to reach out to update you on how we are responding to these new challenges at NZTax.com.au.
We are hearing from our clients that they need us more than ever to keep them updated on the New Zealand business environment, to keep them abreast of assistance and to help them do what needs to be done to get it.
Prime Minister Jacinda Ardern has announced that New Zealand will be in full lockdown for a period of 4 weeks.
New Zealand has expanded its wage subsidy by removing the cap of $150,000 for businesses. Previously that cap meant that only businesses with up to 21 employees will be covered.
These are difficult times. Communication is paramount but what you can share with others is subject to New Zealand’s Privacy Act.
Is an employee entitled to sick pay when they are in self-isolation?
“This is going to hurt”. That’s the message from New Zealand Prime Minister, Jacinda Ardern as the country prepares for the consequences of the Coronavirus outbreak.
The New Zealand government has announced that it is preparing to spend big in order to reduce the impact on the New Zealand economy.
There have been a number of announcements with regard to the tightening of New Zealand’s borders.
To date, these announcements have focused on the movement of people into New Zealand.
It’s that time of the year again when you’ll need to start gathering together your accounting and tax information for the year ended 31 March 2020.
Set out below is a list of items that will assist you with this process, and remind you of some of your tax obligations.
Inland Revenue has issued a new statement to assist in determining the deductibility for New Zealand income tax purposes when costs are incurred in relocating employees to a distant workplace.
This may also address the common question posed by Australian-controlled New Zealand companies where Australian residents are sent to carry out work in New Zealand.
Inland Revenue has announced that tax relief and income assistance are available to people affected by the downturn in business in New Zealand as a result of the outbreak of Coronavirus COVID-19.
They have announced a range of ways to help depending on a person’s circumstances.