Tax Alert

Budget 2018 - Special Edition Tax Alert

May 18, 2018
Finance Minister Grant Robertson delivered the Coalition Government’s first budget yesterday. The focus of Budget 2018 is on public spending and infrastructure investment and there is very little in the way of tax announcements. Given the appointment of the Tax Working Group (TWG) in late 2017, it is unsurprising that there are few tax changes announced as part of Budget 2018. Any significant tax changes are instead likely to be driven by the TWG, which is expected to deliver its final...

Property tax changes & Bright-line test extended to 5 years

May 10, 2018
Property Tax Changes ... Labour is making good on its election policies with tax changes introduced in March that are aimed at increasing housing affordability. Bright-line test extended to 5 years The first change being the (much anticipated) extension of the residential bright line test from 2 years to 5 years. Intention of bright-line rule – buying for resale always taxable The bright-line test you may recall, was introduced to tighten up the existing land taxing provisions. If you purchase land...

Government consulting on R&D tax incentives

May 10, 2018
The government has released a discussion document seeking feedback on proposals to implement a R&D tax credit regime with effect from 1 April 2019. The proposed R&D incentive will be in the form of a 12.5% refundable tax credit on eligible expenditure available to businesses doing R&D in New Zealand. Board proposals The proposals are very much a work in progress, with feedback being sought on various aspects of the regime. However, in broad terms the R&D credit regime proposes: That...