The New Zealand government removes two types of taxes from its citizens, in these difficult days and in light of the Corona pandemic, in order to enhance economic development .
Today, the New Zealand government removed two new types of taxes, in order to support local companies in order to achieve more productive, sustainable and inclusive development.
As part of the release of the government's economic plan, Treasury Secretary Grant Robertson and Secretary of Small Business and Revenue Stuart Nash today announced the removal of two barriers to expansion that companies were facing.
“At present, the costs associated with exploring whether to invest in new assets or business models are often non-deductible for tax purposes,” Robertson said. “Business owners tell us that this can deter them from spending money looking for better ways to do things.” .
"We are changing this so that companies can deduct 'feasibility expenses' from their tax bills, including projects that are not going ahead," Robertson added.
This measure will be included in the tax bill that will be submitted to Parliament early next year, which means that the change can start from the beginning of the next tax year.
The second proposal announced today would change New Zealand's "loss continuity rules" to make it easier for startups to attract investment and start operating.
According to the rules currently in place, a company that suffers a one-year loss can use that loss to reduce its taxable income in the future, but the rules do not work well for startups trying to attract new investments.
The changes announced today (Monday) as part of the government's economic plan are based on initiatives that have already been announced.