Summary:
As we approach November the day light savings are in, and summer is about to arrive. Summer: where the days are long, the sun is warm, and the memories are endless. Hoping we all will have the excellent summer months and upcoming break.
We want to provide you with some valuable insights and updates in the world of finance and accounting.
Summary:
Next month is election year, by mid-October a newly elected govt will take charge. In this issue we will try to cover the tax policies of different parties for small business owners. We want to express our sincere gratitude for entrusting IBBZ Accounting with your financial needs. It is our privilege to collaborate with you, offering personalized accounting solutions that drive your business forward. Without further ado, let us delve into the highlights of september newsletter.
From 15-04-2020 almost all entities trust, companies, sole trader, partnership can carry back the anticipated losses to avail tax refund. The scheme is another measure taken by the Government to assist struggling New Zealand business to deal with economic impact of Covid-19. The bill Covid-19 Response (Taxation and Other Regulatory Urgent Measures) is enacted now.
RWT on dividends between companies
With amendments being made to sections RE 2(5), this now limits the definition of “resident passive income”. This section excludes fully imputed dividends paid to a corporate shareholder if the paying company chooses to exclude the dividend from the definition.
This will allow a company to opt out of withholding RWT on a fully imputed dividend paid to another company.
The above amendments were needed because of company tax rate being lowered from 33% to 28%. Dividends were effectively overtaxed by the amount of RWT withheld.
In the article Making Tax Simpler “Better Administration of PAYE and GST”, the Government have introduced new proposals to improve the tax systems in New Zealand. Such changes relates to PAYE and GST.
The most significant improvement they want to make is to “use modern digital technology to provide faster, more accurate and convenient interactions with Inland Revenue”. This means that they want to integrate PAYE and GST filling process into accounting software.
