COVID – 19 New Zealand Tax Changes
Tax changes were included in the COVID-19 Response Act 2020, which was introduced and passed through Parliament on 25 March 2020.
The main tax changes are:
- The ability to take an immediate deduction for any assets costing $5,000 or less from 17 March 2020; and this threshold will reduce to $1,000 on 17 March 2021 (noting the current threshold is $500).
- Reintroduction of depreciation on non-residential buildings at the rate of 2% diminishing value and 1.5% straight line from the 2020/21 income year (Starting 1 April 2020 for standard balance date taxpayers).
- Allowing broader access to refunds of Research and Development Tax Credits in the 2019/20 income year.
- Ability to apply for use of money interest write-offs for tax debts post 14 February 2020, if they are due to COVID-19.
- Increase in the threshold before provisional tax applies from $2,500 to $5,000 from the 2020/21 income year.
Responses