Tax Changes

Tax Changes

The Business Continuity Package to assist businesses struggling due to the impact of the COVID-19 outbreak includes 5 proposals related to tax:
• Increase in the low-value asset write-off threshold: The low-value threshold has been raised to allow the immediate expensing of assets that cost less than $5,000 in the 2020-2021 income year. There will be a temporary increase for assets purchased in the 12 months from 17 March 2020. After 17 March 2021 the threshold will be $1,000.
• Increase in the provisional tax threshold: he provisional tax threshold has been increased from $2,500 to $5,000 from the 2020/2021 income year. While provisional tax may not be payable throughout the year, taxpayers will need to be mindful of a higher terminal tax cost on 7 April 2022.
• Use of money interest remission: The package allows Inland Revenue the discretion to remit use-of-money interest (UOMI) on late payment if the taxpayer’s ability to make the payment on time was significantly adversely affected by COVID-19.
• Depreciation on non-residential buildings: From the 2020/2021 income year onwards, depreciation is permitted on commercial and industrial buildings. The depreciation rate is 2% declining value or 1.5% straight line. This applies to existing and newly acquired buildings and to capital improvements made to existing buildings.
• Removal of hours test from the In-Work Tax Credit: The hours test eligibility requirement for the in-work tax credit (IWTC) is removed from 1 July 2020

Sunday, 10th January 2021

"Kessels & Associates Ltd (trading as Kessels Ecology) has been a very satisfied client of DB Chartered Accountants for several years now.

We appreciate the professional yet approachable manner of David, Pam and the rest of the team.

They have a genuine interest in our business – a small but busy environmental science service consultancy - and are always on hand to assist. We value being able to regularly meet with David and to assess how the business is tracking one on one, with the opportunity to discuss future plans and options. David is also able to provide advice on a broad range of business development and strategy matters, which we’ve greatly valued.

We can’t recommend David and his team highly enough."

Gerry Kessels & Helen Percy
Copyright ©  |  View Desktop Version